A Labour MP from Glasgow has captured significant attention on social media after creatively explaining the UK’s debt crisis using custard creams and bourbon biscuits. Gordon McKee, the MP for Glasgow South, shared his innovative approach on X ahead of the UK Budget announcement, and within just one hour, his video garnered nearly two million views.
In his presentation, McKee sought to clarify why the UK appears financially strained, asserting that the issue lies primarily in the nation’s rising debt-to-GDP ratio. He stated, “There’s a reason Britain feels broke, and it’s probably not what you think.” As Chancellor Jeremy Hunt urged Labour MPs to support the upcoming Budget, McKee utilized the biscuit analogy to illustrate complex economic concepts.
He explained that the debt-to-GDP ratio represents the comparison between government debt and the country’s wealth. In 1994, this ratio was approximately 30%, meaning the government owed 30 pence for every pound the country generated. McKee noted that this ratio remained stable until the financial crisis of 2008, which saw it surge to around 60%. Over the next decade, it climbed further to about 80%.
During the global Covid-19 pandemic, borrowing escalated even more, pushing the current debt-to-GDP ratio to roughly 100%. Despite these figures, McKee highlighted that countries like the United States (at 120%), France (at 113%), and Japan (at 240%) have higher debt ratios but pay lower interest on their debts.
“Britain is paying more interest on its debt than any of these countries because the people lending money to the government aren’t just looking at the total amount of debt, but how quickly it’s racking up,” he explained. He compared the UK’s financial situation to a friend who has overextended themselves with credit, likening it to spending beyond one’s means and accumulating debt quickly.
In a follow-up video, McKee suggested the government should “stop borrowing like it’s on Klarna,” advocating for increased taxation on the wealthy to generate revenue. He emphasized the importance of economic growth, stating, “If you get economic growth, the debt-to-GDP ratio gets better.” He promised to delve deeper into this topic in a subsequent video.
McKee’s engaging method of using relatable items like biscuits to discuss critical economic issues has resonated with viewers, sparking conversations about the UK’s financial strategies and the need for reform. As the nation prepares for the upcoming budget, his insights may influence public discourse on fiscal responsibility and economic policy.
