Gene Tunny and John Humphreys unpack the economic troubles brewing in the UK, France, and the US—rising debt, social unrest, inflation, and faltering productivity. They explore why bond markets are sounding alarms, why governments are struggling to respond, and what this all means for Australia. The episode draws urgent lessons from these fiscal failures, with stark warnings for what lies ahead if policy inertia continues. Among other issues, they discuss Gary Stevenson’s proposal for a wealth tax in the UK. 

Gene would love to hear your thoughts on this episode. You can email him via [email protected].

This episode was recorded on Thursday, 18 September 2025.  

Timestamps

• Economic Challenges in Major Western Economies (0:00)
• Discussion on UK Economic Turmoil (2:31)
• Impact of Bond Market on UK Government (7:35)
• Comparison with France and the US (16:43)
• Lessons for Australia (35:29)
• Impact of Political Polarisation (43:55)
• Potential Solutions and Challenges (44:15)
• Global Economic Repercussions (44:49)
• Conclusion and Final Thoughts (46:24)

Takeaways

1. The UK’s fiscal crisis is deepening with stalled per capita GDP, rising debt, and bond markets losing confidence.
2. France is politically paralysed amid fiscal deficits and bond yields now surpassing Italy’s—an unprecedented shift.
3. The US faces stagflation risks, with inflation ticking back up and concerns about economic growth.
4. Productivity stagnation is the root problem across Western economies, fueling deficits and weakening growth.
5. Australia must learn from others' mistakes, avoiding unsustainable spending and instead boosting productivity.

Links relevant to the conversation

Slides with charts referred to this episode:

https://drive.google.com/file/d/1ZMkunGxYj57TnCajOxvMcTEh0fQj0y5L/view?usp=sharing

Australian Taxpayers’ Alliance Livestream of 18 September 2025:

https://www.youtube.com/live/8YxnRT_YD50?si=_A1udQmCag3dMtyC

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