economic pressures and the effects on USA and UK

• uncertainty in both USA and EU


  • USA is made up of states vs EU being made of separate countries, its harder for everyone to agree
  • USA is not aging as quickly as the EU, fertility rate 1.9 vs 1.6
• why was there a debt crisis in EU in 2008?


  mortgage lending and loans were given to people who could not afford to pay it back

  bank then invested the money and eventually suffer and close down

  tax payers money was then used to keep them alive -> Northern Rock, UK bank
• what did the conservative government do to counteract the debt crisis?


  austerity measures
• what is austerity?


  cutting public spending and increasing taxes
• Spain - effects of austerity measures during debt crisis


  • 2.3 million people at risk or vulnerable
  • red cross charity, food aid
  • 1 in 4 unemployed
  • mental health crisis during cut back on social services
• economic challenges for the EU


  • $10 trillion in debt (2019)
  • 7.5% unemployment rate (2019)
  • workforce dropping by 14% by 2030
  • youth unemployment 15% (2019)
• demographic/social challenges for the EU 


  • after 2035, populations is foretasted to decrease
  • 19% of EU citizens are over 65 in (2018)
  • long term unemployment risks a 'lost generation' of young people as well as political disaffection
  • migration and terrorism have become issues of divide in the EU
• political challenges in the EU


  • tensions between countries wanting deeper connection (Germany) and countries wanting less (UK)
  • EU's 26 countries don't have the same opinion
  • Britian has left the EU
• resource challenge in the EU


  • energy security is an issue- oil and gas from Russia is now an issue due to conflicts with Ukraine
• economic challenges for USA


  • $24.95 trillion in debt (2019)
  • health spending uses 17% of annual GDP
  • rising energy prices, expensive to run businesses, heat homes, and transport people and goods
• demographic/social challenges for USA


  • race relations between some areas in USA
  • political deadlock between Democrats and Republicans
  • ageing is slower than EU and social costs are taken care of by individual rather then government
  • 2/3 of adults are overweight or obese
• political challenges for USA


  • recent events have effected democracy
  • failed to lead in combating covid
  • donald trump political style has caused raised eyebrows
• resource challenges for USA


  • water insecurity in south west caused by over consumption
  • chronic trade deficit, imports outweigh value of goods and services exported