The epidemic caused a serious economic recession. How does the British government decide to deal with it?

Affected by the epidemic, the global economy has fallen sharply. Among them, Britain, once known as the country where the sun never sets, seems to have ushered in the sunset, because under the epidemic, the British economy has been seriously declining, the economic contraction rate is faster than the 2008 financial crisis, and the unemployment rate in the UK has increased greatly. The UK has invested 30 billion pounds to alleviate the employment crisis.

Britain's economy declined by 2% in the first quarter of 2020, and its GDP fell by 20.4% in April 2020, which is the biggest economic decline in Britain since 1979. After the outbreak of COVID-19 in March 2020, the Bank of England bought 450 billion pounds of debt, and the bonds it bought before once again exceeded 800 billion pounds, while the total debt of Britain increased to a record 2 trillion pounds.

This has exceeded the total GDP of Britain, which means that Britain's current debt is equivalent to more than 100% of economic output, which is not a heavy burden for the country, because the bonds issued always have to be repaid, and Britain cannot directly default. In the end, these debts will still be paid by taxpayers, which means that these debts will eventually be borne by British nationals.

This means that in the next decade or even decades, Britain's tax burden ratio may increase greatly, and it is definitely not advisable to directly increase taxes for everyone. Then it is only the high-income group with a small number of people but the highest income that may eventually increase taxes.

In addition to lending, the Bank of England has been relaxing monetary policy, reducing the benchmark interest rate to a record 0. 1% and strengthening the quantitative easing program. When the bank interest rate is only 0. 1%, almost no one will put money in the bank, which has played a great role in the rapid economic recovery. After all, money can't escape inflation in the bank, and there must be a place to go.

At the same time, quantitative easing means that it is easier to borrow money, which means that everyone can get funds more easily than before, which can enable enterprises to survive under the impact of this epidemic.