UK economic growth
Discussion
GDP in isolation is pretty useless.
Let's say a government borrowed billions and billions and created a bunch of 'jobs' in order to spend those billions on non-income generating things (I.e not invested in infrastructure or in stimulating new technology or business or productive growth that leads to goods and services that can be sold to overseas payers) - there'd be a load of 'growth' in GDP, but much of it wouldn't be 'real'.
In fact, you might end up with an economy with stagnating total earnings, but increased consumption with the yawning gap between spending and income filled with yet more debt.
That could happen, and yet people might see 10+ years of consistent "growth".
I wonder what would happen when all the debt had to be repaid?
Let's say a government borrowed billions and billions and created a bunch of 'jobs' in order to spend those billions on non-income generating things (I.e not invested in infrastructure or in stimulating new technology or business or productive growth that leads to goods and services that can be sold to overseas payers) - there'd be a load of 'growth' in GDP, but much of it wouldn't be 'real'.
In fact, you might end up with an economy with stagnating total earnings, but increased consumption with the yawning gap between spending and income filled with yet more debt.
That could happen, and yet people might see 10+ years of consistent "growth".
I wonder what would happen when all the debt had to be repaid?
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff