How the British Broke Their Own Economy

Britain, the birthplace of the Industrial Revolution, now suffers from its opposite: profound energy shortages and deep affordability crises [non-paywalled link]. A new report titled 'Foundations' identifies the root cause -- 'it is difficult to build almost anything, anywhere' in the UK.

Housing exemplifies this malaise. Since the 1990s, homeownership among young British workers has halved while housing prices doubled. The 1947 Town and Country Planning Act effectively nationalized development rights, requiring special permission for new construction and establishing restrictive 'green belts.' Despite Margaret Thatcher's market reforms, British house-building never recovered.

This constrictive policy has stymied potential growth beyond housing, Atlantic reports. Cambridge remains a small city despite biotech breakthroughs that might have transformed it into a major hub. Transit infrastructure languishes -- Leeds is Europe's largest city without a metro system. Energy production has collapsed, with per capita electricity generation now roughly one-third of America's.

Britain faces a self-imposed scarcity crisis. Environmental regulations, while beneficial, created a one-way system where lawsuits easily block development. As co-author Sam Bowman summarized: 'Europe has an energy problem; the Anglosphere has a housing problem; Britain has both.' The solution requires comprehensive reform-- overhauling the planning system, reducing anti-growth litigation, and encouraging energy production to unlock what the private sector 'already wants to do.'

Read more of this story at Slashdot.