Rachel Reeves will soon present a spring statement amidst economic stagnation, escalating tariffs, and a call for military spending reflective of past global tensions. The article suggests a repeating pattern of historical economic struggles from the 1920s and 1930s, characterized by protectionism and weakened multilateral relationships, particularly influenced by US isolationism. The persistent low interest rates have yet to yield significant economic growth, indicating a precarious fiscal environment that mirrors troubling historical precedents, leaving the future uncertain for the UK and global economies.
The return of protectionism is but one way in which the years between the first and second world wars are being reprised.
As in the interwar years, the multilateral system is being weakened by US isolationism.
There has been no repeat of the Great Depression of the 1930s - at least not yet - but there is no real sign that a long period of ultra-low interest rates has resulted in stronger economic growth.
Countries such as Britain will, as a result of Trump's reticence about deploying US power for the defence of Europe, have to increase military spending.
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