People in Britain often say that the United States is much like the United Kingdom. Recent polling by Freshwater Strategy showed that the British public thinks that the U.K., as a country, would be the 7<\/span>th<\/span> richest U.S. state. The actual 7<\/span>th<\/span> richest state, North Dakota, boasts a GDP per capita of $102,000 compared to the U.K.\u2019s $52,000.<\/span><\/p>\n Many Brits assume that in both economies most people are poor, while a small number of individuals accumulate vast wealth at the top. In this myth, the U.S. suffers from the same perceived problem as Britain of inequality without wider prosperity.<\/span><\/p>\n The uncomfortable reality, however, is that the average Brit is significantly poorer than most Americans.<\/span><\/p>\n By GDP per capita, parts of America that are routinely described as economically lagging outperform the British economy. Even Mississippi, often cited as the poorest state, has a GDP per capita of $54,000. That should be a sobering benchmark. This is not a story about inequality in Britain but about weak national wealth creation.<\/span><\/p>\n Britain retains the self-image of a rich country but its underlying performance tells a different story \u2014 one of high taxes, vast regulation, weak productivity growth, and poor incentives for entrepreneurs.<\/span><\/p>\n This reality has shaped the political climate. Between 2008 and the E.U. referendum in 2016, living standards stalled. The Brexit vote was, in part, a collective response to that stagnation and a demand for a different economic trajectory. Leaving the E.U. was never a growth strategy in itself but rather an opportunity to pursue one.<\/span><\/p>\n In this respect, Brexit was \u2014 and still is \u2014 a fork in the road. Britain has greater autonomy over its regulatory, tax, and trade policy. The question is whether that autonomy is used to drive growth or not. My forthcoming story of the Brexit referendum, <\/span>Ten Years On<\/span><\/a>, chronicles the campaign and what has happened since.<\/span><\/p>\n Henry NICHOLLS \/ AFP via Getty Images<\/p>\n<\/div>\n In some areas, Britain has benefited from its post-Brexit freedoms. Examples of this range from tech, where being outside the E.U.\u2019s regulatory regime has allowed the U.K. to be more nimble, to healthcare, where we can now approve new drugs far faster. Overall, however, we have not made as much of these freedoms as we should have.\u00a0<\/span><\/p>\n Critics blame Brexit for Britain\u2019s economic stagnation, but much of it stems from longer-term policies that have held back prosperity.<\/span><\/p>\n![\"Pedestrians](\"https:\/\/dw-wp-production.imgix.net\/2026\/04\/GettyImages-2271018760-864x576.jpg\")
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