Another Huge Economic Warning Comes From The UK

London Protest

Photo: Twitpic

This is a theme we’ve been touching on a lot lately.The UK continues to look like a good model for what the US economy faces, as it begins to take austerity seriously.

Recently, there has been a precipitous drop in UK consumer confidence, and the knock-on effects to certain retailers has been quite notable.

Now a new study shows a gigantic drop in UK disposable income — the biggest since 1921.

Politicians in the US keep warning about the possibility of a Greek or Ireland scenario, while at the same time inducing an ugly UK-like one.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.