Michael Dowall

it is I.

[adidas UK @adidasUK]

CHOOSE SCOTLAND 🏴󠁧󠁢󠁳󠁣󠁴󠁿🏆

@ScotlandNT @LewisCapaldi

[Josh Hunt @iAmJoshHunt]

Let me walk you through the arithmetic of Britain's demographic crisis. Because once you see the numbers, you can't unsee them.

The UK has around 43 million people of working age. These are the people the entire system depends on. They pay the taxes. They fund the pensions. They staff the hospitals.

9 million of them are economically inactive. Not working and not looking for work. 1 in 5.

That number deserves unpacking because it isn't one problem. It's several, layered on top of each other.

The largest group, around 2.8 million, are out due to long-term sickness or disability. That number has been rising steadily since 2019 and recently hit a record high. Among younger people, the driver is mental health. Among older workers, it's musculoskeletal conditions, back problems, and other chronic illness. People in their early twenties are now more likely to be economically inactive due to ill health than people in their forties. That statistic alone should stop you in your tracks.

The second largest group, roughly 2.4 million, are students in full-time education. They're investing in their future productivity. But while they study, they aren't contributing to the tax base.

Around 1.6 million are looking after family or home, disproportionately women. Around 1.1 million took early retirement before state pension age. Many left during or after the pandemic and haven't returned. The rest are classed as discouraged or otherwise outside the labour market.

On top of the 9 million inactive, another 1.87 million are unemployed. Youth unemployment has risen to around 16%.

So of around 43 million people of working age, roughly 32 million are actually in work. About a quarter of the working-age population is not in paid employment.

Now look at who they're supporting.

There are roughly 12 million people above state pension age. The official dependency ratio is 278 pensioners per 1,000 people of working age. That sounds manageable. About 3.6 to one.

But when you use the number of people actually working, it drops to roughly 2.7 workers per pensioner. Less than three.

By 2047, the latest official projections show the ratio worsening to 302 per 1,000, even after planned pension age rises. ONS modelling submitted to the House of Lords suggests that to hold the current ratio constant, pension age would eventually need to reach 70 or beyond. Under current law, it rises to 67 by 2028, with further increases likely to stay on the table.

And the support base is under growing pressure.

The fertility rate just hit 1.41. The lowest on record. You need 2.1 to keep the population stable. We're at two thirds of that and falling. The average age of mothers is now 31. The government has expanded funded childcare significantly, and that's a genuine step forward. But the birth rate kept falling right through it. Because the problem isn't just childcare. It's housing. It's wages. It's the cost of being alive in this country while trying to raise a family.

The overall population is still projected to grow, mainly through migration. But the pension-age population is growing faster than the working-age population. The number of people aged 85 and over is projected to nearly double, from 1.7 million in 2022 to 3.3 million by 2047. More pensions. More NHS demand. More social care. All landing on a workforce where the ratio of workers to dependants is weakening every year.

And here's the part nobody talks about.

According to the ONS, at least 1.4 million people in the UK are raising children while simultaneously caring for ageing parents. The sandwich generation. Wider estimates suggest the true figure may be considerably higher. Typically aged 35 to 64, spanning millennials and Gen X. These are people in mid-career. Many in management roles. Peak earning years. Maximum professional responsibility. And they're juggling all of that with school runs on one side and elderly care on the other.

Two thirds say their finances are under strain. Carers UK estimates that over 600 people a day quit their jobs to care for a loved one. Research by the Centre for Economics and Business Research puts the average lifetime financial cost of being a sandwich carer at over £345,000 in lost earnings, reduced pension contributions, and direct care costs. Women are more than twice as likely to be the ones who leave work.

Every one of those people who leaves is one fewer taxpayer. One fewer pension contributor. One fewer worker holding up the dependency ratio. And they don't just lose their salary. They lose years of compound growth on pension savings. They arrive at retirement with a depleted pot, needing the same support they were once helping to fund.

This is about to intensify. As the over-85 population nearly doubles and social care continues to collapse, more people in that 35 to 64 age bracket will face the impossible choice between their career and their parents. The sandwich generation will get bigger. The workforce will come under even more strain.

Now layer the health crisis on top.

The Health Foundation projects that 3.7 million working-age people will be living with major illness by 2040, a 17% rise on 2019 levels. Already, 3.7 million people who are in work have a health condition that limits the type or amount of work they can do. That number has grown by 1.4 million in a decade.

The House of Lords Economic Affairs Committee said it plainly. Those who are already economically inactive are becoming sicker, meaning they're less likely to return to work. The ageing effect that was previously being masked by other factors is now being reinforced by them.

So here's the picture.

The state pension costs around £146 billion a year. Funded entirely by current workers paying current retirees. There is no pot. The triple lock ratchets it higher every year. The working-age support base is under pressure and weakening. The number of dependants is growing. The people in the middle are getting sicker, burning out, and leaving work to care for parents the state can't look after. The generation behind them is smaller because the birth rate has collapsed. And the generation behind them will be smaller still.

Nobody chose this. No generation is to blame. People didn't decide to be priced out of having children. Workers didn't choose to develop chronic conditions. The sandwich generation didn't volunteer to care for ageing parents with no safety net.

This is a systems failure. We can argue over whether it's underinvestment in housing, health, social care, and prevention, or poor personal choices of the population at large that have produced a workforce that is too small, too sick, and too stretched to carry what's being placed on it. But this is where we're at. And the weight is growing every year.

The arithmetic doesn't negotiate. And right now, it says we're running out of people to pay for the country we've built.

[ἐκον βρω @EconBreau]

Socialism is the theory that if you abolish profit, bread will somehow bake itself out of moral superiority.

[Michael Dowall @mikeydowall]

@NHPUKOfficial All debt is issued by bonds. People buy bonds. We/anyone with a low risk portfolio own the debt. This is bullshit.

[Brian Armstrong @brian_armstrong]

We weren't allowed to run this ad on TV in the UK, but that's fine, we can just share it online.

We're using humor to make a very important point: the current financial system simply doesn't work for most people. It needs to be updated.

[Michael Dowall @mikeydowall]

@AlanJLSmith The U.K. is in a debt spiral and this won’t stop until we cut government spending at every level.

[Russ Cook @hardestgeezer]

The first person ever to run the entire length of Africa. Mission complete🫡

[Sahil Bloom @SahilBloom]

Last year, I had a conversation that changed my life.

It caused me to upend everything and move across the country.

The lesson from it may change yours:

[Sonia Poulton @SoniaPoulton]

The elephant in the room with Jimmy Savile is this: he didn't 'get away with it in plain sight', he procured children for members of the establishment and he was protected. He was not a weird loner, he was part of a club. That's the story they don't want you to know.

[Michael Dowall @mikeydowall]

@Gards1240 Looks class

[Michael Dowall @mikeydowall]

@Uniped1975 Watched it all in one day.

[Michael Dowall @mikeydowall]

@jaynemesis Iceland France and Azerbaijan

[Michael Dowall @mikeydowall]

Nothing to see here.

[Michael Dowall @mikeydowall]

Peace and Quiet

[Dave @DaveLaFaro]

In a display of solidarity with the Suez Canal, I have decided to also get blocked for 5 days.

[Michael Dowall @mikeydowall]

@freetrade @freetrade do you know if the Ark etf will be available with you guys anytime soon?

[Michael Dowall @mikeydowall]

@doddsie Will we be able to buy US stock tomorrow?

[Michael Dowall @mikeydowall]

@MyeOpinions lol

[Michael Dowall @mikeydowall]

@philipdevonald3 Yes sir, all being well let’s do this.