if really the obsession with economic growth was to make life much better for us then maybe we will all be millionaires. Not the sad statistics where at least 50% of people are living paycheck to paycheck, even for high income earners. Great contents as always!
The planet doesn’t have the resources for us all to be millionaires and live their lifestyle. We’d either destroy it faster than we are at the moment, or everything becomes so much more expensive that being a millionaire means little.
What resources are finite? Can you list some resources that "ran out", ever? Instead, resources are invented. Like new oil extraction tech creats more oil resources. Like aluminium and silicon became resources late 19th century when it was discovered and invented how to extract and refine them.
@bjorntorlarsson new oil extraction teck does not create more oil resources, it extracts the harder to reach stuff in a way that costs more money and energy. And, in the process releases more heat trapping gasses into the atmosphere at the expense of our future.
@@jonathonpotts5666 Yes, and it is technology that creates resources by making them extractable. Physical matter and energy are abundant in the universe, and indestructable at that. It is tech that turns it into (economic) resources. I don't see how that could ever end as long as people are allowed to keep inventing new methods to harvest them. And there is no historic example of anything ever "running out", except for trees and non-flying birds on islands.
@ forgot to add the mass borrowing on credit that people could only afford due to low rates is now catching up as people did not understand that rates can go up as well as down
My opinion: Growth has many positive points, but it should largely be in service of happiness and health. I've often wondered where the UK is going wrong. Why are other developed nations often far happier places to live? Politicians like Reeves and Truss can drone on about making a bigger pie, but if the majority of the people making that pie barely get a bigger slice, living standards are worse than before the world financial crisis in 2008, and the people who make out like bandits are the mega-rich, then sod it. Without the people doing the work there is nothing, and yet they frequently do not get rewarded. When I started work around 2008 I got a middling starting wage, but rents were cheap and there was fast progression at work. 3 years after graduating university, I started a new job and my 2010 salary was really good. Fast forward 14 years and, adjusting for inflation, I'm only earning 30% more as a base salary these days despite having a senior role and a lot of experience. Graduates in my industry today have no chance of earning the equivalent salary in today's money, and they're dealing with insane rents and a cost of living crisis. There's a lot of talk about people being lazy or not wanting to go the extra mile, but I agree with them. It made sense for me to do it because I was rewarded with pay rises and promotions. They just get told "maybe next time".
This. It's the pits to be told you're not working hard enough, when you don't get much of a pay rise, if any, and the cost of living takes an ever bigger slice of you income. And really really not fair when you have a £70k student debt that you're paying exorbitant interest on.
@@andrewclimo5709 excellent point on student debt. I live in Scotland so there were/are no fees to pay, just loans for accommodation/living costs. I was fortunate enough to be able to pay mine off quickly without doing anything special because my generation had it comparatively easy. I'm from a working class family, so there's probably no way I could've gone to university in England today without going into serious debt. The interest rates on student loans are scandalously high leading to a generation of people whose wages are reduced to pay interest, not touching the principal. The Bank of England interest rates have been somewhere between 0.1 to 0.5% from 2009(!) to 2022, yet students were paying multiples of this. I'm not an economist, so I don't understand why the disparity is so big. Perhaps the channel owner can help with this? Anyway, end result: the government issues millions of loans that will never be repaid in full, and we have poorer people with less spending money and reduced quality of living. Did they talk to you about the financial aspects before you went to university? I was told precisely zero about it, it was just "oh just apply for a loan and you pay it back when you can", which is a really terrible way to make decisions as a 17/18 year old. I used to shake my head at student debt in the USA but it's possibly even worse in the rUK now. I really feel for Gen Z and beyond. You have to do more for less and get tarred with the "lazy" brush by newspapers and media commentators.
7:01 on paper it seems western countries don't pollute much, but it's only because we moved manufacturing plants to china in the 80's as we shifted to majority service economies. we are dependent on chinese imports, that are produced by emitting co2, just not in the EU or US.
1. 99% of co2 comes from natural sources. Rocks mainly. But to argue the false premise..we are using more efficient bulbs tvs appliances than we did 30 years ago...yet energy bills are going up..how can that be? Profiteering.
While we did outsource a lot we produce more now than ever before here (where ever your "here" is - US, EU etc). Percentage-wise the west lost out to asia but in total numbers everyone is growing industrial output.
There are 3 mains sources of pollution. Manufacturing (when goods are produced), Consumption (when goods are used & disposed off) and Transport. Only the first was "exported" to China, but a lot of industry still remains in Northern America and Europe, which has become more energy efficient and less polluting. To a lesser extent, this is also true of the industry which relocated to China. However, you're correct that the rise of consumerism means we're all now consuming more than ever before, which is why pollution is still increasing worldwide. Regardless, environmental regulations differ between countrirs and those that are currently industrializing prioritize this over environmental considerations. The challenge is to persuade them to think environmentally once they've industrialized, if not beforehand.
Economic growth, but sustainable growth, is required in poor countries. However, we need significant degrowth in high income, high consumption countries. Reducing inequality is critical to limiting climate change.
What exactly have we sacrificed for economic growth? We haven't reformed the planning system or the healthcare system. We haven't significantly deregulated the economy. You can't have your cake and eat it too. The economy isn't everything, but in the long run it is almost everything.
you can have you cake and it it too, here is how it works, you eat it and then you have it in your tummy. The UK is full of those fibs telling naysayers, yuck.
Great Video. There is trend of people being more aware of pitfalls of consumption especially with clothes and phones. Just funny how this government asked institutions to come up with ideas for growth and the FCA came back with an idea to relax lending rules for first time buyers. Totally insane and should such liberalisation be realised house prices will be propped up - or will rise further. Of course repossessions would become more common too. How does that help first time buyer? It only helps the already rich
No, you're wrong. Spending my time watching YT videos like this is an excellent use of my time. All these economic models don't factor in such things as food quality, climate change impact and healthy living. They're known as externalities, in other words these economic models are limited and for that reason inaccurate. Why do governments still make policy decisions based on incomplete economic data?
Externalities are negative impacts on the quality of life caused by economic activity and which cost money to fix. E.g. Clean water is essential for economic growth because the consequences of dirty water means less labour output, and more spent on Healthcare as people are unwell, and the economic devaluation of assets blighted by bad smells. Lack of investment in infrastructure, means less economic activity over time, but dividends still get paid out to dhsreholders is an externality. GDP is only important to people who like abstractions, rather than reality. GDP is being used more as a credit rating system for borrower nations by the bond markets , than a measure of anything actually essential to the quality of life of ordinary people. What's worse is that GDI, Gross Domestic Income - the money we get for all this production - should be equal to GDP, but tends to be lower... How screwed up is that?
First, I'd argue that higher growth just going to the top 1% isn't good - as you've pointed out before, wages without the wealthiest has stood still. On pollution, we've just shoved manufacturing overseas, although it is cleaner than when coal was king. As a pessimist, I think things really are getting worse. Another good video, though, and please consider one on climate change's effect on economies, including if the gulf stream slows.
Higher GDP does increase the amount of tax taken, assuming no tax changes. However, tax revenues don’t pay for anything. Provided bank lending increases faster than repayments, this adds money to the economy. Also, when the government runs a deficit, this adds new money to the economy. Taxes, remove excess money from the economy preventing inflation.
Great topic, would love to see more similar videos. Great metric for leaving poverty, not so great afterwards?? Has absolute decoupling of GDP from green house gas emissions (or other ecological damage) happened globally or in the uk for true consumption?? This feels like massive news if it has been achieved Ps. Would love to see a few gardening videos sprinkled in 😀
Answer: It’s an easy response to difficult questions. It’s the British Way, sorting out problems in the economy or life in general is too hard! Whereas words are easy and cheap & the voters seem to like them!
I’m a subscriber because you mentioned the British sit com THE GOOD LIFE it may have influenced my wife and I to attain more happiness over things. Thank you I can still hear her say OH THOMMMMMM!!!!’
It is not the taxes that drive the need for growth- it is the ability to borrow. The ratio of the national debt to GDP is the basis used when buying government debt. Governments that run a deficit (virtually all of them) absolutely need GDP to grow so they can borrow more.
Surely, the problem with low growth is that national debt just keeps growing (per capita) as we borrow to pay the interest. Start with zero debt and we might all become Tom Goods or hunter/gatherers for a while but how would we pay for our health service or our defence? Going for growth while competing with other more aggressive, unfair, undemocratic economies will be a struggle. I see no way out. We're doomed, we're doomed!!
But your landlords will be happy. You think I'm joking. Shops all around me are closing. But rents are still going up and up. 90% of people I know are on minimum wage or just a little above it.
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You did not mension GDP per head. If over a year your countri's gdp grows by 1% but your population grows by 1.2% then your gdp per head is actually going BACKWARDS!
@terryj50 yes, but we know that most of the dose not circulate in the Irish economy. Ireland is simply being used as a "conduit" by big multinationals because of their low corporation tax. That is not really happening in the UK, because our corporation tax it much higher.
All economies are being screwed over by financial globalisation. One look at the richest economy in the world by GDP, and when you look under all the hyperbole, they have rough sleepers and tent cities too, and their aggregates like life expectancy is less than ours. And we are being encouraged to be like that? No wonder our youth are disillusioned.
The only reason CO2 emissions have declined in the West is because the West has outsourced manufacturing to Asia. GHG emissions continue to climb worldwide, no matter how many solar panels and wind turbines are deployed. You also appear to link government spending to tax receipts, which flies in the face of MMT. Apart from that, a very important and compelling video, thanks!
We don’t need 2+% per annum GDP growth if we go back to a fixed money supply. Productivity gains then translate into falling prices. No productivity gains equates to flat prices. Obviously falling productivity likely still sees price rises.
because the inhabitant is just a temporary extra for the house, the wealth is in that house, and the inhabitant is just a steward and maintainer of the wealth who pays coincil tax.
It looks as if some people do prefer to talk about how to distribute an extra part of a growing cake than to think about a new distribution of a cake of the same size as last year, because this might create some unwanted ideas...
Interesting video. Yet, the UK's ability to support around 70 million people in 2025 depends on economic growth! Additionally, the national debt needs economic growth in order to maintain credibility and necessary for paying the national debt. Not least, , the primary means of transfer or exchange rate for Sterling will be lower in value. Essentially ,economic growth is essential to maintain living standards , let alone any increases! One final point , don't forget any credibility, trust, nd most of all authority of any national government! Otherwise, without real economic growth above inflation, the UK then becomes ungovernable❤😮
In a debt-driven economy, growth is absolutely necessary to stabilise the debt/GDP ratio. Having a stagnant denominator and a growing numerator (due to higher interest rates for example) can put in real troubles any government. It can be in fact catastrophic for the economy if it gets out of control. That’s the real reason. A bit of a self-fulfilling prophecy. Or in other words, in the absence of public debt, or if it’s at a very low level, the need for growth is greatly diminished. You can sort of see this in the decade to covid where the UK enjoyed low interest rates (thus debt was not growing fast also because public spending went to a halt), and yet growth was subpar all along and it was not a big deal. Very different nowadays
From what I understand, to fulfil its existing obligations at home and abroad with no new services, cuts, taxes or additional borrowing: the UK economy needs to grow at approx. 2.6 - 2.9% a year. The country has achieved this - in normal economic conditions - just once in 2 decades.
Economic growth is good if it's linked to increased productivity which generally means the population gets wealthier and the cost of goods and services falls. Economic growth linked to inflation and population expansion via mass immigration (the model we have) means goods and services with limited supply (e.g. housing) get more expensive and without proportional investment in healthcare and local services they eventually collapse because demand will outstrip supply. Growth needs to be expressed as GDP per capita and not simply GDP along with the population size to better measure success or failure of government policy.
Nice one Tejvan. You're spot on again. GDP goes up, the guys at the top get richer, everyone else's GDP per capita stays the same, whilst their quality of life declines.
Growth is not something we will not have to worry about because you need to dramatically cut taxes to get it and there is no chance of that. Spending is the problem !
Question: isn't constant growth possible because of a constant unfolding of time? Its a measure of how effectively time as been used at a population level- and make more possible in the future? Time used well means more tools made, more efficient technology, more experience and knowledge etc. If so, maybe the problem is with a narrow measure of growth which masks the difference between growth that increases the possibilities for a few vs for many. Its easier to focus on a tiny subset of people (and narrow growth for a few sectors and regions) than empowering most. The later would ensure most people's time can do more in the future - creating more reliable growth in the long term. But the former is easier to coordinate for that particular fiscal year - and get the thumbs up from the news.
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How much did just the smart phone stop growth and GDP? What did it cancel? Camera and shops, film and printing, calculators, diaries, calendars, typewriters, record players, tape machines, newspapers, magazines, letters and stationery, job centres. All the jobs and shops that went, etc etc etc, and that was just one thing. Just wait until A I takes all the services and office jobs and what is left in manufacturing and management and financial jobs. No tax revenue. It is all deflationary. I guess this is the time when we are surplus to requirements as planned by the WEF. You will own nothing and life will not be worth living. Is that the plan with net Zero? Except for the chosen ones.
Typewriters were superseded by the personal computer, record players by tape and CD (though they now have a following again). You can still own all those things too but yes they're not as common as they were. We're a nation that had its industries dismantled over the course of 20/30 years when the s*x, dr*gs and rock n roll generation entered the work force. Now wealth is concentrated in that generation and those below have to face a broken UK where getting on is considerably more challenging. Nothing to do with the WEF, Britain is how it is because one group took and left nothing behind.
And those jobs were replaced by jobs which didn't exist before.... This has happened throughout human history, but not as rapidly as it's happening now. Change is inevitable. The challenge is adapting quickly enough, especially when the changes occur within a human lifetime, making it increasingly difficult for people to adapt.
I think nominal GDP growth is/was a decent rough proxy for improving living standards for countries as they develop, but it kinda falls apart when economies mature and long run growth drops to 1-2%. Then, the correlation becomes weak as that's essentially just an accounting fiction to account for inflation. In a flatlining economy, people naturally focus on inequality because the lower income groups aren't getting better in absolute terms. In late stage capitalism, growth as a single policy goal doesn't resonate with people if they don't see improvements around them. It may even produce worse outcomes as governments chase quick fixes to boost nominal GDP, such as credit loosening, inward migration, etc. So we end up in a situation where business lending is weak while mortgage lending is ever increasing. Actual productive investment is even made harder because of onerous laws and regulations. Growth in abstract terms is good, but as a measure of good outcomes. In itself, it means little if our quality of life gets worse.
To add: leaps in technology are deflationary, because things get better but cheaper. This presents a problem to measure, and so GDP calcs have to do all kinds of hedonic adjustments to 'correct' them. I think we've hit the point where the GDP calculation itself is being exposed as failing to measure stuff that matters while measuring stuff that doesn't.
15 years ago I watched the movie Zeitgeist: Moving Forward which touched on this issue of the need for constant growth in order to sustain capitalism. It is for sure ecologically unsustainable and morally questionable to say the least. If the money stops flowing through the economy suddenly everyone is poor. A very unnatural system driven by consumption and greed. I don't know what the answer is honestly and I haven't seen a good argument for a post-capitalist society. In the Zeitgeist movie they advocated for a Resource Based Economy which was interesting however very hard to achieve. I would be interested to hear you opinion on the topic of an RBE economy. Is it possible and how would it differ from other moneyless proposals like communism.
YES, YES and YES! Now you’re talking my language Tejvan! Nothing in nature grows forever and we, future generations and the global south are facing an unliveable world if we don’t drastically change this GDP / Growth mindset. We can manage degrowth with things like 4 day workeeks, UBI, releasing time for people to do more community based roles like looking after family, community food growing (get councils to give over unused land), bringing things to Repair Cafes and using Tool libraries etc. I highly recommend listening to Jason Hickel discuss degrowth on a recent Tech Won’t Save Us podcast. 🙏🌍🌱
There is no unused land in the uk. None. The uk can no longer feed the population off the farmland. 30 years ago was the tipping point. Too many mouths.
Yes, here in the US the public is restive. Something is wrong, houses cost too much, our children are locked into 1000 body cattle pens, neighborhoods have been replaced with drive-to subdivisions that are isolation areas; everythig depends on the car. Our society has basically eliminated all other economic stimuli except for the car. We made this choice prior to WWII and it hasnt changed since. Everythig revolves around the CAR. The final blow was the claimed co-vid infections that demanded we pick up and relo. No more family connections, jobs long gone to the factory relo, get into your car and drive................where? We destroyed public transportation in its infancy, we replaced local shopping with shoppng malls now abandoned, and where would you like to drive to next?
True. The embarrassingly simplistic GDP metric allows politicians to play on the masses ignorance of economics. It alludes to the premise that we're ALL getting richer when it's blindingly obvious that most of us aren't. Thanks to the 'system', by design, just a relative few are.
Interesting to see the UK has outgrown France and Germany over the last 35 years. Reading online comments and BBC HYS would make you think the opposite was true.
Yes, that's why Germany got gross monthly salary of 4925 euros and France got 3800 euros. While UK got gross monthly salary of 3369 euros. Cause UK was growing faster than France and especially Germany in the last 35 years. 😅😅😅😅 That's why France and Germany got huge bullet train networks all over their countries plus connected with each other, while UK only got a small line from London to the southeastern coastline of UK and even THAT happened only cause the EU had initiative to build it and the train is called Eurostar. Hell even Italy and Spain got fantastic bullet train networks and futuristic infrastructure compared to UK.
Population is up 12 million in that time. Germany’s has been declining, only up 5 million in that time and going down currently. France up 10 million but doesn’t have the same connections and allies we have.
@@auldfouter8661 Check the gross monthly salaries in Germany, France and UK on Wikipedia. 4925 euros for Germany, 3800 euros for France and 3300 euros for the UK. Also check the bullet train networks in France and Germany, that cover the ENTIRE countries, that France had since like the 70s or early 80s. Then you will realise who is growing faster...
Growth that goes to a small part of the population while infrastructure and services deteriorate (the UK) versus less growth with a commitment to maintaining if not improving infrastructure and services (France/Germany). It just highlights the terrible mismanagement of British elites.
Good video. Is this not economic growth v economic development? IMHO no UK government for a long time seems to have had a strategic sense of what the UK economy should be about. Maybe it’s still supposed to be financial services- but that’s not a popular statement post 2008.
The key issue overlooked is that we are competing against other countries. A country that does not pursue economic growth will have only a short period of idyllic rural existence before it is crushed by less "enlightened" countries. When the high tech army product of higher economic growth rolls up to your door, giving a happy smile and waving a carrot at them is not going to help.
The bottom line is this, the country isn't going to get any economic growth to speak of unless those who are capable of delivering it are selected for employment by employers (or provided with the incentive to start their own businesses) and are reasonably remunerated for their efforts. Neither is true at the moment hence the poor growth and poor productive output. -Not selecting the most productive members of the population to undertake the tasks require to generate growth. Sub-Optimal/Minimal Economic Growth and poor productive output. -Allowing the necessities of life, like housing, energy and groceries to remain overpriced. Less disposable income and less incentive to generate the growth which pays for those things. There are a multitude of problems which need addressing which people like me have been banging on about since 2008, everything from the unproductive attitude of large swathes of the private sector to economic fairness based on the delivery of results, but successive government have been unwilling to tackle them, leading the same result. The declining health of the nation only compounds these problems as well
West's abandonment of meritocracy is the most fundamental societal disaster. And worst of all recruiting based on race and gender, stuff one is born with and cannot help. Instead of recruiting those who are best at doing the job. Those who believe cenored media's indoctrinatin, are seriously stupid.
Gobbledegook. I suggest you actually research the topic being discussed, and stop trying to twist it to fit your agenda. Economic Reality no 1: GDP is an estimate, an abstraction, by economists who don't even describe your reality or anyone else's in their models. It's all averages as aggregates. Economic Reality no. 2: GDP describes the estimated value of economic production. It doesn't care who or what does the production. We will find that out when AI and further automation become the dominant forms of production. And don't forget that the UK is a Service-dominant Economy, with manufacturing and agriculture accounting for less than 20% of GDP, so in reality, most of our production is in services that mostly won't need people to produce. So, your argument is, or will be moot over time.
Without growth the government won’t be able to pay off its debt and maintain the crumbling services. It’s like you wouldn’t quit a day job and live on self sustaining lifestyle if the house is leaking and the bank is increasing mortgage.
How can the government grow the economy if the U.K. is not in the EU? Where’s the subsidy going to come from? Who is going to pick the fruits and vegetables? Where are you going to get the people to jobs in manufacturing, construction, healthcare, hospitality and education?
If growth is beneficial how come cancer kills? Growth is like boiling a kettle; the more heat you use the hotter the water. But from where do you get all of that energy? That’s the problem with net zero. The UK has provided the illusion of growth by increasing the population but that has hardly translated into a better standard of living for everyone. As for poverty: the cause of real poverty was and still is the lack of land and it is connected to population growth. People forced off their land to provide food for them to live in ‘poverty’ in a city slum. I think the pursuit of growth rather benefits a few while the rest of us have to provide the heat. More is not necessarily better and the lack of imagination displayed by our ‘leadership’ suggests that it isn’t growth that they are obsessed with but rather the maintenance of the status quo.
"Killing in medieval China"? Compare China and Europe the last thousands of years. Count the number of wars, the numbers killed. China has very rarely been at war. In spite of always having been the richest and most technologically advance civilization, they never subjugated their neighbors, like the western globalist social liberals do today with their eternal wars, coups and genocides. The "Green" parties are the most belligerent and oppressive in Europe today. Total intolerance, because they are so obviously wrong in everything they claim, they must censor everyone to keep up their sick totalitarian illusions in reality denying-land.
Also let’s say you got 1% economic growth….if you have 1% population growth in the same year, your true economic growth is zero. You’ve just stayed still. Our handlers know this and they don’t dare mention it or even breathe a word about it. The reason is: we’re in a per capita economic depression and have been for years already.
Without economic growth you can't repay your loans and mortgages. Growth isn't an option. Without it, the financial system collapses - see how much fun that is.
I'd rather stability than growth. All you need to do is reach a level of productivity and satisfaction, then *maintain* it. However this "growth" fairytale is about already wealthy people getting even wealthier off the backs of the rest of us.
The behaviour by the worlds’ treasurers, by keeping interest rates low for too long, has created a huge societal divide. We work harder and longer to make the rich richer. Most of us are just standing still.
Covid policies saw almost one trillion pounds handed to the rich in our society. Now they using the passive income from that wealth to buy assets. This is pushing up asset costs and can only be addressed by taxing some of it back to government.
@@bjorntorlarsson The theoretical rent or mortgage you would pay yourself for a house you already own is counted though. That's as daft as counting govt. debt, I'm surprised they haven't started counting it towards GDP.
@@aaronogden9900 The planned economy of debt creation by government deficits and dictated interest rates that do not balance savings with borrowing as it would on an unregulated market (and always did), is a huge redistribution and concentration of wealth. Old time left cared about the distribution of wealth. I don't know of any Western politician today who does. Perhaps they have become too stupid to understand how it works? Or, even worse, voters don't care what they vote for, so no politician has any reason to care for them in return. The voters don't notice the difference, they don't care, they simply vote as censored media tells them to vote. European democracy has rotten from below. People today don't want to be in charge of how their society is governed.
I'm quite sick of hearing the word 'growth'. It has negative connotations to me now. I want to focus on quality of life for myself and future generations, not just making large corporations richer.
@ep1929 more money will make the debt look smaller? If you understand that money is government debt, then more money makes the total outstanding negative equity bigger. Remember money always equals zero.
@camcairns2584 sort of but it's actually inflation plus gdp that needs to be bigger than interest rates for the debt to shrink. I'm not sure why the economy would collapse...
No, tax on inordinate wealth is needed to fund public services. At the minute, "growth" is only serving to create deeper inequality and it's getting more and more difficult to turn away from that.
But even small increases in global temperatures will have enormous negative consequences because it's happening so fast now compared to natural variations
Please compare the forecasts those climate models made 30 years ago, with the outcome we have today. Give examples of how the forecasts were right and wrong. Or watch Al Gore's "An Inconvenient Lie" movie from 2006 and compare his forecassts with the outcome today. Evaluate claims!
We have said about the climate for 30 years it will be much more immigration and more abnormal weather. Where I live in central Scandinavia the winter is in average 5 weeks shorter than the 80's, and in northern Norway its 2 months shorter.
Populations in developed countries are shrinking, except for those with high immigration. The reason we need economic growth is because we are increasingly burdened with providing goods and services to unproductive retirees, so we need to increase productivity and efficiency or else society will collapse.
The British population is not growing as it is too expensive to have more than one child even with both parents working. The population is being artificially grown through immigration and migration. The banking system needs economic growth to pay the interest on all the debt, ponzi economy.
@@i_like_beer-o2f More likely unproductive immigrants, less than half of immigrants in UK work.
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@@MacksCurley The UK population is growing. Whether you think those new members are truly “British” or not it’s insignificant. I’m here to discuss economy. The immigrants are the only reason that made the British economy not collapse so far.
The problem with the people who step out of the hamster wheel is that they still expect to be able to enjoy the welfare state paid for by all those who are still banging around the hamster wheel
Population would need to get back to 1950s levels to have farmland to do it. Too many mouths now, so they feed them factory chemicals and call it food.
It is mathematically quite simple. You can't have exponential growth in a finite world. Just do the physical experiment. Take a box and fill it partly with water. Every day you are adding 10% more water to the box and wait till the box explodes.
The guy has a kitchen garden, and wonders what growth is good for... Why not improve things when one can? One learns and get better at making things. That is growth. Phones get better because for each step of improvement, new possible steps of improvement become apparant. It's the nature of life to improve.
I started to realise back in the early 2000's that every daily news report on every news channel wasn't actually for me (normal everyday working bloke) but was actually for the top 10 percent, GDP data is for those who own all the shares, own all the companies, own all the land, own all the property, and that isn't for the majority of us! No no no, not for me and you!
If everybody lived that “good life” described at the beginning, very soon, things like measles would come back, as there’d be no one making vaccines anymore.
so we would solve the housing crisis, food would be more nutritious and we would return to multigenerational households? Lol. To say that if all doctors up sticks we wouldn't have any vaccines is a facetious and strawman argument. people can work part time rather than 40hours a week and capitalism wont go away. youll be able to import. Obviously 'everyone' isnt going to quit it all to run a farm, however there is a lot to be said for spending your weekends gardening to grow your own food. first year is very expensive for set up but next year is cheap. Don't hate on a lifestyle without trying it, and don't assume that the way we are now is the best way and the way it will always be. Bill gates thought there was no way the family computer would ever need more than 640kbs in memory in the 1980's.... Medieval peasants worked 150 days a year and paid max 10% tax annually.
if really the obsession with economic growth was to make life much better for us then maybe we will all be millionaires. Not the sad statistics where at least 50% of people are living paycheck to paycheck, even for high income earners. Great contents as always!
The planet doesn’t have the resources for us all to be millionaires and live their lifestyle. We’d either destroy it faster than we are at the moment, or everything becomes so much more expensive that being a millionaire means little.
Exponential economic growth for an ever increasing population on a planet with finite resources …… what could possibly go wrong ?!?!
What resources are finite? Can you list some resources that "ran out", ever? Instead, resources are invented. Like new oil extraction tech creats more oil resources. Like aluminium and silicon became resources late 19th century when it was discovered and invented how to extract and refine them.
@@bjorntorlarsson Dodo Bird Drumsticks
Farmland in the UK.
You neoliberal trickster.
@bjorntorlarsson new oil extraction teck does not create more oil resources, it extracts the harder to reach stuff in a way that costs more money and energy. And, in the process releases more heat trapping gasses into the atmosphere at the expense of our future.
@@jonathonpotts5666 Yes, and it is technology that creates resources by making them extractable. Physical matter and energy are abundant in the universe, and indestructable at that. It is tech that turns it into (economic) resources. I don't see how that could ever end as long as people are allowed to keep inventing new methods to harvest them. And there is no historic example of anything ever "running out", except for trees and non-flying birds on islands.
"Growth" is their code word for inequality.
Growth in the uk as well as the USA is all debt. People really need to start living within their means not borrowing and living on cheap credit.
The "means" they are paid isn't enough. All the money has gone to the top 1%
@ it always has the difference is how all the borrowing for Covid and the financial crisis is causing mass inflation.
@ forgot to add the mass borrowing on credit that people could only afford due to low rates is now catching up as people did not understand that rates can go up as well as down
My opinion: Growth has many positive points, but it should largely be in service of happiness and health. I've often wondered where the UK is going wrong. Why are other developed nations often far happier places to live?
Politicians like Reeves and Truss can drone on about making a bigger pie, but if the majority of the people making that pie barely get a bigger slice, living standards are worse than before the world financial crisis in 2008, and the people who make out like bandits are the mega-rich, then sod it. Without the people doing the work there is nothing, and yet they frequently do not get rewarded.
When I started work around 2008 I got a middling starting wage, but rents were cheap and there was fast progression at work. 3 years after graduating university, I started a new job and my 2010 salary was really good. Fast forward 14 years and, adjusting for inflation, I'm only earning 30% more as a base salary these days despite having a senior role and a lot of experience. Graduates in my industry today have no chance of earning the equivalent salary in today's money, and they're dealing with insane rents and a cost of living crisis.
There's a lot of talk about people being lazy or not wanting to go the extra mile, but I agree with them. It made sense for me to do it because I was rewarded with pay rises and promotions. They just get told "maybe next time".
This. It's the pits to be told you're not working hard enough, when you don't get much of a pay rise, if any, and the cost of living takes an ever bigger slice of you income. And really really not fair when you have a £70k student debt that you're paying exorbitant interest on.
@@andrewclimo5709 excellent point on student debt. I live in Scotland so there were/are no fees to pay, just loans for accommodation/living costs. I was fortunate enough to be able to pay mine off quickly without doing anything special because my generation had it comparatively easy. I'm from a working class family, so there's probably no way I could've gone to university in England today without going into serious debt.
The interest rates on student loans are scandalously high leading to a generation of people whose wages are reduced to pay interest, not touching the principal.
The Bank of England interest rates have been somewhere between 0.1 to 0.5% from 2009(!) to 2022, yet students were paying multiples of this. I'm not an economist, so I don't understand why the disparity is so big. Perhaps the channel owner can help with this?
Anyway, end result: the government issues millions of loans that will never be repaid in full, and we have poorer people with less spending money and reduced quality of living.
Did they talk to you about the financial aspects before you went to university? I was told precisely zero about it, it was just "oh just apply for a loan and you pay it back when you can", which is a really terrible way to make decisions as a 17/18 year old.
I used to shake my head at student debt in the USA but it's possibly even worse in the rUK now. I really feel for Gen Z and beyond. You have to do more for less and get tarred with the "lazy" brush by newspapers and media commentators.
7:01 on paper it seems western countries don't pollute much, but it's only because we moved manufacturing plants to china in the 80's as we shifted to majority service economies. we are dependent on chinese imports, that are produced by emitting co2, just not in the EU or US.
china took them and made them less polluting and more efficient.
1. 99% of co2 comes from natural sources. Rocks mainly. But to argue the false premise..we are using more efficient bulbs tvs appliances than we did 30 years ago...yet energy bills are going up..how can that be? Profiteering.
While we did outsource a lot we produce more now than ever before here (where ever your "here" is - US, EU etc). Percentage-wise the west lost out to asia but in total numbers everyone is growing industrial output.
There are 3 mains sources of pollution. Manufacturing (when goods are produced), Consumption (when goods are used & disposed off) and Transport. Only the first was "exported" to China, but a lot of industry still remains in Northern America and Europe, which has become more energy efficient and less polluting. To a lesser extent, this is also true of the industry which relocated to China.
However, you're correct that the rise of consumerism means we're all now consuming more than ever before, which is why pollution is still increasing worldwide.
Regardless, environmental regulations differ between countrirs and those that are currently industrializing prioritize this over environmental considerations. The challenge is to persuade them to think environmentally once they've industrialized, if not beforehand.
Economic growth, but sustainable growth, is required in poor countries. However, we need significant degrowth in high income, high consumption countries. Reducing inequality is critical to limiting climate change.
Limits to Growth was one of my favorite reads back in undergrad econ.
I've been looking for an intelligent breakdown like this. Thank you for creating it.
A breakdown it was for sure! Keep looking, nothing to see here, except for a gardener who sows seeds he doesn't want to grow. (He's a madman!)
What exactly have we sacrificed for economic growth? We haven't reformed the planning system or the healthcare system. We haven't significantly deregulated the economy. You can't have your cake and eat it too. The economy isn't everything, but in the long run it is almost everything.
you can have you cake and it it too, here is how it works, you eat it and then you have it in your tummy. The UK is full of those fibs telling naysayers, yuck.
What have you sacrificed?
The United Kingdom is sacrificing everything right now. Labour Party didn't change that trajectory.
Great Video. There is trend of people being more aware of pitfalls of consumption especially with clothes and phones. Just funny how this government asked institutions to come up with ideas for growth and the FCA came back with an idea to relax lending rules for first time buyers. Totally insane and should such liberalisation be realised house prices will be propped up - or will rise further. Of course repossessions would become more common too. How does that help first time buyer? It only helps the already rich
No, you're wrong. Spending my time watching YT videos like this is an excellent use of my time.
All these economic models don't factor in such things as food quality, climate change impact and healthy living. They're known as externalities, in other words these economic models are limited and for that reason inaccurate. Why do governments still make policy decisions based on incomplete economic data?
Externalities are negative impacts on the quality of life caused by economic activity and which cost money to fix. E.g. Clean water is essential for economic growth because the consequences of dirty water means less labour output, and more spent on Healthcare as people are unwell, and the economic devaluation of assets blighted by bad smells. Lack of investment in infrastructure, means less economic activity over time, but dividends still get paid out to dhsreholders is an externality. GDP is only important to people who like abstractions, rather than reality. GDP is being used more as a credit rating system for borrower nations by the bond markets , than a measure of anything actually essential to the quality of life of ordinary people. What's worse is that GDI, Gross Domestic Income - the money we get for all this production - should be equal to GDP, but tends to be lower... How screwed up is that?
First, I'd argue that higher growth just going to the top 1% isn't good - as you've pointed out before, wages without the wealthiest has stood still. On pollution, we've just shoved manufacturing overseas, although it is cleaner than when coal was king. As a pessimist, I think things really are getting worse. Another good video, though, and please consider one on climate change's effect on economies, including if the gulf stream slows.
Higher GDP does increase the amount of tax taken, assuming no tax changes. However, tax revenues don’t pay for anything. Provided bank lending increases faster than repayments, this adds money to the economy. Also, when the government runs a deficit, this adds new money to the economy. Taxes, remove excess money from the economy preventing inflation.
Great topic, would love to see more similar videos. Great metric for leaving poverty, not so great afterwards??
Has absolute decoupling of GDP from green house gas emissions (or other ecological damage) happened globally or in the uk for true consumption?? This feels like massive news if it has been achieved
Ps. Would love to see a few gardening videos sprinkled in 😀
6:20 You got me there. A little below the belt but I'll let it slide due to this video being really good!
Answer: It’s an easy response to difficult questions. It’s the British Way, sorting out problems in the economy or life in general is too hard! Whereas words are easy and cheap & the voters seem to like them!
Economic growth only serves the wealthy. We need to measure outcomes for the bottom 50% like quality of healthcare, education etc. Great episode
I’m a subscriber because you mentioned the British sit com THE GOOD LIFE it may have influenced my wife and I to attain more happiness over things. Thank you
I can still hear her say OH THOMMMMMM!!!!’
It is not the taxes that drive the need for growth- it is the ability to borrow. The ratio of the national debt to GDP is the basis used when buying government debt. Governments that run a deficit (virtually all of them) absolutely need GDP to grow so they can borrow more.
Surely, the problem with low growth is that national debt just keeps growing (per capita) as we borrow to pay the interest. Start with zero debt and we might all become Tom Goods or hunter/gatherers for a while but how would we pay for our health service or our defence?
Going for growth while competing with other more aggressive, unfair, undemocratic economies will be a struggle.
I see no way out. We're doomed, we're doomed!!
No growth if you’re citizens have no money to spend and your retail hospitality and nightlife is collapsing what else is left 😢
But your landlords will be happy.
You think I'm joking. Shops all around me are closing. But rents are still going up and up. 90% of people I know are on minimum wage or just a little above it.
money get immobilised in houses, concreted economy, frozen country, no growth.
I'm glad you made this video it reminds me of my transformation from a nobody to good home, $34k monthly and a good daughter full of love
My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.
wow this awesome I have been looking for ways to be successful, please how??
Making touch with financial advisors like Elizabeth Regina Nelson who can assist you restructure your portfolio, would be a very creative option. Personal financial management will be crucial to navigating the next difficult times
She is really a good investment advisor. I was privileged to attend some of her seminars. That's how I started my own crypto investment
Elizabeth Regina Nelson has really set the standard for others to follow, we love her here in the Uk 🇬🇧 as she has been really helpful and changed lots of life's.
You did not mension GDP per head. If over a year your countri's gdp grows by 1% but your population grows by 1.2% then your gdp per head is actually going BACKWARDS!
GDP per head is meaningless to as you think everyone in Ireland earns 100k they do not. All this is just debt to grow.
@terryj50 yes, but we know that most of the dose not circulate in the Irish economy.
Ireland is simply being used as a "conduit" by big multinationals because of their low corporation tax.
That is not really happening in the UK, because our corporation tax it much higher.
All economies are being screwed over by financial globalisation. One look at the richest economy in the world by GDP, and when you look under all the hyperbole, they have rough sleepers and tent cities too, and their aggregates like life expectancy is less than ours. And we are being encouraged to be like that? No wonder our youth are disillusioned.
The only reason CO2 emissions have declined in the West is because the West has outsourced manufacturing to Asia. GHG emissions continue to climb worldwide, no matter how many solar panels and wind turbines are deployed. You also appear to link government spending to tax receipts, which flies in the face of MMT. Apart from that, a very important and compelling video, thanks!
We don’t need 2+% per annum GDP growth if we go back to a fixed money supply. Productivity gains then translate into falling prices. No productivity gains equates to flat prices. Obviously falling productivity likely still sees price rises.
2:52 This pretty much sums up current economic problems. Houses make more than their inhabitants these days.
because the inhabitant is just a temporary extra for the house, the wealth is in that house, and the inhabitant is just a steward and maintainer of the wealth who pays coincil tax.
It looks as if some people do prefer to talk about how to distribute an extra part of a growing cake than to think about a new distribution of a cake of the same size as last year, because this might create some unwanted ideas...
Interesting video. Yet, the UK's ability to support around 70 million people in 2025 depends on economic growth! Additionally, the national debt needs economic growth in order to maintain credibility and necessary for paying the national debt. Not least, , the primary means of transfer or exchange rate for Sterling will be lower in value. Essentially ,economic growth is essential to maintain living standards , let alone any increases! One final point , don't forget any credibility, trust, nd most of all authority of any national government! Otherwise, without real economic growth above inflation, the UK then becomes ungovernable❤😮
In a debt-driven economy, growth is absolutely necessary to stabilise the debt/GDP ratio. Having a stagnant denominator and a growing numerator (due to higher interest rates for example) can put in real troubles any government. It can be in fact catastrophic for the economy if it gets out of control.
That’s the real reason. A bit of a self-fulfilling prophecy. Or in other words, in the absence of public debt, or if it’s at a very low level, the need for growth is greatly diminished.
You can sort of see this in the decade to covid where the UK enjoyed low interest rates (thus debt was not growing fast also because public spending went to a halt), and yet growth was subpar all along and it was not a big deal. Very different nowadays
From what I understand, to fulfil its existing obligations at home and abroad with no new services, cuts, taxes or additional borrowing: the UK economy needs to grow at approx. 2.6 - 2.9% a year. The country has achieved this - in normal economic conditions - just once in 2 decades.
Economic growth is good if it's linked to increased productivity which generally means the population gets wealthier and the cost of goods and services falls. Economic growth linked to inflation and population expansion via mass immigration (the model we have) means goods and services with limited supply (e.g. housing) get more expensive and without proportional investment in healthcare and local services they eventually collapse because demand will outstrip supply. Growth needs to be expressed as GDP per capita and not simply GDP along with the population size to better measure success or failure of government policy.
Nice one Tejvan. You're spot on again. GDP goes up, the guys at the top get richer, everyone else's GDP per capita stays the same, whilst their quality of life declines.
The capital consumption system is like a vortex but shaped like a Swiss mountain ,K2 shape, it use to be just a mound
Growth is not something we will not have to worry about because you need to dramatically cut taxes to get it and there is no chance of that. Spending is the problem !
Question: isn't constant growth possible because of a constant unfolding of time? Its a measure of how effectively time as been used at a population level- and make more possible in the future? Time used well means more tools made, more efficient technology, more experience and knowledge etc.
If so, maybe the problem is with a narrow measure of growth which masks the difference between growth that increases the possibilities for a few vs for many. Its easier to focus on a tiny subset of people (and narrow growth for a few sectors and regions) than empowering most. The later would ensure most people's time can do more in the future - creating more reliable growth in the long term. But the former is easier to coordinate for that particular fiscal year - and get the thumbs up from the news.
Infinite growth on a finite planet
Degrowth is serious economics now as the earth runs out of resources. We must moderate desire and live like Tom Good on permaculture communities
Economic gains aren’t strictly material. (E.g Computer chips now are more valuable than in the 90’s despite smaller size)
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How much did just the smart phone stop growth and GDP? What did it cancel? Camera and shops, film and printing, calculators, diaries, calendars, typewriters, record players, tape machines, newspapers, magazines, letters and stationery, job centres. All the jobs and shops that went, etc etc etc, and that was just one thing. Just wait until A I takes all the services and office jobs and what is left in manufacturing and management and financial jobs. No tax revenue. It is all deflationary. I guess this is the time when we are surplus to requirements as planned by the WEF. You will own nothing and life will not be worth living. Is that the plan with net Zero? Except for the chosen ones.
Typewriters were superseded by the personal computer, record players by tape and CD (though they now have a following again). You can still own all those things too but yes they're not as common as they were.
We're a nation that had its industries dismantled over the course of 20/30 years when the s*x, dr*gs and rock n roll generation entered the work force. Now wealth is concentrated in that generation and those below have to face a broken UK where getting on is considerably more challenging.
Nothing to do with the WEF, Britain is how it is because one group took and left nothing behind.
And those jobs were replaced by jobs which didn't exist before....
This has happened throughout human history, but not as rapidly as it's happening now. Change is inevitable. The challenge is adapting quickly enough, especially when the changes occur within a human lifetime, making it increasingly difficult for people to adapt.
Surely, growth is putting a strain on the planet, everyone buying stuff they don't really need.
I think nominal GDP growth is/was a decent rough proxy for improving living standards for countries as they develop, but it kinda falls apart when economies mature and long run growth drops to 1-2%. Then, the correlation becomes weak as that's essentially just an accounting fiction to account for inflation.
In a flatlining economy, people naturally focus on inequality because the lower income groups aren't getting better in absolute terms. In late stage capitalism, growth as a single policy goal doesn't resonate with people if they don't see improvements around them. It may even produce worse outcomes as governments chase quick fixes to boost nominal GDP, such as credit loosening, inward migration, etc.
So we end up in a situation where business lending is weak while mortgage lending is ever increasing. Actual productive investment is even made harder because of onerous laws and regulations.
Growth in abstract terms is good, but as a measure of good outcomes. In itself, it means little if our quality of life gets worse.
To add: leaps in technology are deflationary, because things get better but cheaper. This presents a problem to measure, and so GDP calcs have to do all kinds of hedonic adjustments to 'correct' them. I think we've hit the point where the GDP calculation itself is being exposed as failing to measure stuff that matters while measuring stuff that doesn't.
15 years ago I watched the movie Zeitgeist: Moving Forward which touched on this issue of the need for constant growth in order to sustain capitalism. It is for sure ecologically unsustainable and morally questionable to say the least. If the money stops flowing through the economy suddenly everyone is poor. A very unnatural system driven by consumption and greed. I don't know what the answer is honestly and I haven't seen a good argument for a post-capitalist society. In the Zeitgeist movie they advocated for a Resource Based Economy which was interesting however very hard to achieve. I would be interested to hear you opinion on the topic of an RBE economy. Is it possible and how would it differ from other moneyless proposals like communism.
YES, YES and YES! Now you’re talking my language Tejvan! Nothing in nature grows forever and we, future generations and the global south are facing an unliveable world if we don’t drastically change this GDP / Growth mindset. We can manage degrowth with things like 4 day workeeks, UBI, releasing time for people to do more community based roles like looking after family, community food growing (get councils to give over unused land), bringing things to Repair Cafes and using Tool libraries etc. I highly recommend listening to Jason Hickel discuss degrowth on a recent Tech Won’t Save Us podcast. 🙏🌍🌱
There is no unused land in the uk. None. The uk can no longer feed the population off the farmland. 30 years ago was the tipping point. Too many mouths.
I am gonna watch The Good Life right now. Thank you so much for the discovery!! I love watching British stuff from the before times. It gives me hope.
Felicity Kendall..............
It's classic British goodliness. Great actors, great script, great story 😊
Yes, here in the US the public is restive. Something is wrong, houses cost too much, our children are locked into 1000 body cattle pens, neighborhoods have been replaced with drive-to subdivisions that are isolation areas; everythig depends on the car. Our society has basically eliminated all other economic stimuli except for the car. We made this choice prior to WWII and it hasnt changed since. Everythig revolves around the CAR. The final blow was the claimed co-vid infections that demanded we pick up and relo. No more family connections, jobs long gone to the factory relo, get into your car and drive................where?
We destroyed public transportation in its infancy, we replaced local shopping with shoppng malls now abandoned, and where would you like to drive to next?
True.
The embarrassingly simplistic GDP metric allows politicians to play on the masses ignorance of economics.
It alludes to the premise that we're ALL getting richer when it's blindingly obvious that most of us aren't.
Thanks to the 'system', by design, just a relative few are.
It always got on my nerves. GDP growth is an effect not a target.
Interesting to see the UK has outgrown France and Germany over the last 35 years. Reading online comments and BBC HYS would make you think the opposite was true.
Yes, that's why Germany got gross monthly salary of 4925 euros and France got 3800 euros. While UK got gross monthly salary of 3369 euros. Cause UK was growing faster than France and especially Germany in the last 35 years. 😅😅😅😅 That's why France and Germany got huge bullet train networks all over their countries plus connected with each other, while UK only got a small line from London to the southeastern coastline of UK and even THAT happened only cause the EU had initiative to build it and the train is called Eurostar. Hell even Italy and Spain got fantastic bullet train networks and futuristic infrastructure compared to UK.
Population is up 12 million in that time. Germany’s has been declining, only up 5 million in that time and going down currently.
France up 10 million but doesn’t have the same connections and allies we have.
@@auldfouter8661 Check the gross monthly salaries in Germany, France and UK on Wikipedia. 4925 euros for Germany, 3800 euros for France and 3300 euros for the UK. Also check the bullet train networks in France and Germany, that cover the ENTIRE countries, that France had since like the 70s or early 80s. Then you will realise who is growing faster...
By what metrics has it out grown France and German
Growth that goes to a small part of the population while infrastructure and services deteriorate (the UK) versus less growth with a commitment to maintaining if not improving infrastructure and services (France/Germany). It just highlights the terrible mismanagement of British elites.
Good video. Is this not economic growth v economic development? IMHO no UK government for a long time seems to have had a strategic sense of what the UK economy should be about. Maybe it’s still supposed to be financial services- but that’s not a popular statement post 2008.
The key issue overlooked is that we are competing against other countries. A country that does not pursue economic growth will have only a short period of idyllic rural existence before it is crushed by less "enlightened" countries. When the high tech army product of higher economic growth rolls up to your door, giving a happy smile and waving a carrot at them is not going to help.
thats why the idea of country is so stupid
@@swojnowski8214 Calling something stupid wont make it go away.
The bottom line is this, the country isn't going to get any economic growth to speak of unless those who are capable of delivering it are selected for employment by employers (or provided with the incentive to start their own businesses) and are reasonably remunerated for their efforts. Neither is true at the moment hence the poor growth and poor productive output.
-Not selecting the most productive members of the population to undertake the tasks require to generate growth. Sub-Optimal/Minimal Economic Growth and poor productive output.
-Allowing the necessities of life, like housing, energy and groceries to remain overpriced. Less disposable income and less incentive to generate the growth which pays for those things.
There are a multitude of problems which need addressing which people like me have been banging on about since 2008, everything from the unproductive attitude of large swathes of the private sector to economic fairness based on the delivery of results, but successive government have been unwilling to tackle them, leading the same result. The declining health of the nation only compounds these problems as well
West's abandonment of meritocracy is the most fundamental societal disaster. And worst of all recruiting based on race and gender, stuff one is born with and cannot help. Instead of recruiting those who are best at doing the job. Those who believe cenored media's indoctrinatin, are seriously stupid.
Gobbledegook. I suggest you actually research the topic being discussed, and stop trying to twist it to fit your agenda.
Economic Reality no 1: GDP is an estimate, an abstraction, by economists who don't even describe your reality or anyone else's in their models. It's all averages as aggregates.
Economic Reality no. 2: GDP describes the estimated value of economic production. It doesn't care who or what does the production. We will find that out when AI and further automation become the dominant forms of production. And don't forget that the UK is a Service-dominant Economy, with manufacturing and agriculture accounting for less than 20% of GDP, so in reality, most of our production is in services that mostly won't need people to produce. So, your argument is, or will be moot over time.
1:43 adds such a personal touch :)
....and then riffs on The Good Life. Sadly no subliminal Felicity Kendal inserts.
Growth is working in jobs you dont like to buy things u dont need.
Without growth the government won’t be able to pay off its debt and maintain the crumbling services. It’s like you wouldn’t quit a day job and live on self sustaining lifestyle if the house is leaking and the bank is increasing mortgage.
Tejvan do your Yorkshire accent again👌
We want per capita growth, something clearly not happening as population is growing faster than economic growth so we are getting poorer.
How can the government grow the economy if the U.K. is not in the EU?
Where’s the subsidy going to come from?
Who is going to pick the fruits and vegetables?
Where are you going to get the people to jobs in manufacturing, construction, healthcare, hospitality and education?
If growth is beneficial how come cancer kills? Growth is like boiling a kettle; the more heat you use the hotter the water. But from where do you get all of that energy? That’s the problem with net zero. The UK has provided the illusion of growth by increasing the population but that has hardly translated into a better standard of living for everyone. As for poverty: the cause of real poverty was and still is the lack of land and it is connected to population growth. People forced off their land to provide food for them to live in ‘poverty’ in a city slum. I think the pursuit of growth rather benefits a few while the rest of us have to provide the heat. More is not necessarily better and the lack of imagination displayed by our ‘leadership’ suggests that it isn’t growth that they are obsessed with but rather the maintenance of the status quo.
Great illusion so we avoid to kill each other like in medieval time
"Killing in medieval China"? Compare China and Europe the last thousands of years. Count the number of wars, the numbers killed. China has very rarely been at war. In spite of always having been the richest and most technologically advance civilization, they never subjugated their neighbors, like the western globalist social liberals do today with their eternal wars, coups and genocides. The "Green" parties are the most belligerent and oppressive in Europe today. Total intolerance, because they are so obviously wrong in everything they claim, they must censor everyone to keep up their sick totalitarian illusions in reality denying-land.
Also let’s say you got 1% economic growth….if you have 1% population growth in the same year, your true economic growth is zero. You’ve just stayed still.
Our handlers know this and they don’t dare mention it or even breathe a word about it.
The reason is: we’re in a per capita economic depression and have been for years already.
100% agree when adjusted for inflation.
Without economic growth you can't repay your loans and mortgages. Growth isn't an option. Without it, the financial system collapses - see how much fun that is.
I worked for the government, if everyone worked for the government and got an index linked government pension they would have better lives.
How can the government grow the economy if the U.K. is not in the EU?
You need increase productivity, but investors will not invest just to take their gains via More taxes.
I'd rather stability than growth. All you need to do is reach a level of productivity and satisfaction, then *maintain* it. However this "growth" fairytale is about already wealthy people getting even wealthier off the backs of the rest of us.
Most countries are seriously in debt, they need to find ways to repay their debts as quickly as possible, otherwise they will end up like Greece.
GDP is like a politician's score to compare their government with their rivals'
An exploitation score. Bragging rights at Davos.
PLEASE MAKE A VIDEO ABOUT DEVOLUTION (LOCAL GOVERNMENT REORGANISATION)
WHY ARE YOU SHOUTING? 🙉
Could they increase tax revenue but taxing the surplus hoarded by the rich?
Low interest rates and cheap borrowing cause high asset prices.
The behaviour by the worlds’ treasurers, by keeping interest rates low for too long, has created a huge societal divide. We work harder and longer to make the rich richer. Most of us are just standing still.
Covid policies saw almost one trillion pounds handed to the rich in our society. Now they using the passive income from that wealth to buy assets. This is pushing up asset costs and can only be addressed by taxing some of it back to government.
People forgot rates can go up
we love that
@ the main issue was people spent well beyond their means when rates for low on rubbish they did not need. Then they blame the rich for it.
Real growth is an increase in production.
Importing people and printing more money to subsidize them is not economic growth.
Govt. Debt nowadays counts towards a country's GDP.
No, it doesn'. Please check stuff out before you make claims about stuff you have not informed yourself about. You don't look good like this.
@@bjorntorlarsson The theoretical rent or mortgage you would pay yourself for a house you already own is counted though. That's as daft as counting govt. debt, I'm surprised they haven't started counting it towards GDP.
@@aaronogden9900 The planned economy of debt creation by government deficits and dictated interest rates that do not balance savings with borrowing as it would on an unregulated market (and always did), is a huge redistribution and concentration of wealth.
Old time left cared about the distribution of wealth. I don't know of any Western politician today who does. Perhaps they have become too stupid to understand how it works? Or, even worse, voters don't care what they vote for, so no politician has any reason to care for them in return. The voters don't notice the difference, they don't care, they simply vote as censored media tells them to vote. European democracy has rotten from below. People today don't want to be in charge of how their society is governed.
Because our debt is growing, so how are we going to repay it without a surplus? And we are not repaying it, then we'll go bankrupt
That's not true, and not the point being made here.
Uk cannot go bankrupt it can keep printing all that happens is more inflation.
Judges and Lawyers are in charge,not people who know about Economics.
asking regulators to come up with ideas for growth tells you everything.
Pure bottery. GIGO.
Yep. The Good Life, despite being a brilliant comedy, doesn't bear much economic scrutiny. 😊
Don't you need growth so as you can pay the interest on money.
Growth costs money though. Its a circle jerk.
only place you can get more growth is space.
I'm quite sick of hearing the word 'growth'. It has negative connotations to me now. I want to focus on quality of life for myself and future generations, not just making large corporations richer.
van life is the modern equivalent of the good life. A lot of Tom & Barbaras on youtube trying to make it work.
It is with your government.
Where never going to get much growth anymore there's hardly any factory's open they shut most of them down in the 1980s
It’s to make the debt look smaller
Money is debt. Why do you want it to look smaller?
@@Jenks1higher GDP, more money & higher inflation - this will indeed make the debt look smaller.
@ep1929 more money will make the debt look smaller? If you understand that money is government debt, then more money makes the total outstanding negative equity bigger. Remember money always equals zero.
If GDP doesn't outpace borrowing, interest rates rise to levels that swallow tax revenue, and the economy collapses.
@camcairns2584 sort of but it's actually inflation plus gdp that needs to be bigger than interest rates for the debt to shrink. I'm not sure why the economy would collapse...
That growth is needed to fund public services
No, tax on inordinate wealth is needed to fund public services. At the minute, "growth" is only serving to create deeper inequality and it's getting more and more difficult to turn away from that.
That "growth" is in a hospital bed using the services. It's a zero sum game.
Our entire monetary system and the welfare state depends on constant population growth.
What's the point of growth if 90% of it goes to the already rich?
The only economic growth we have had is more pounds in circulation!
But even small increases in global temperatures will have enormous negative consequences because it's happening so fast now compared to natural variations
Please compare the forecasts those climate models made 30 years ago, with the outcome we have today. Give examples of how the forecasts were right and wrong. Or watch Al Gore's "An Inconvenient Lie" movie from 2006 and compare his forecassts with the outcome today. Evaluate claims!
We have said about the climate for 30 years it will be much more immigration and more abnormal weather. Where I live in central Scandinavia the winter is in average 5 weeks shorter than the 80's, and in northern Norway its 2 months shorter.
Why is designing toys a waste of time?
The banking system needs economic growth to pay the interest on the debt. Ponzi debt growth.
You forget that we’re in a growing population. If the economy is not getting bigger it means the quality of life is getting worse. Period.
Populations in developed countries are shrinking, except for those with high immigration.
The reason we need economic growth is because we are increasingly burdened with providing goods and services to unproductive retirees, so we need to increase productivity and efficiency or else society will collapse.
Population growth means our flatline economy a big disaster
The British population is not growing as it is too expensive to have more than one child even with both parents working. The population is being artificially grown through immigration and migration. The banking system needs economic growth to pay the interest on all the debt, ponzi economy.
@@i_like_beer-o2f More likely unproductive immigrants, less than half of immigrants in UK work.
@@MacksCurley The UK population is growing. Whether you think those new members are truly “British” or not it’s insignificant. I’m here to discuss economy. The immigrants are the only reason that made the British economy not collapse so far.
The problem with the people who step out of the hamster wheel is that they still expect to be able to enjoy the welfare state paid for by all those who are still banging around the hamster wheel
Good luck getting everyone to eat organic that’s not even possible with the population we have. Mostly agreed though, thank you!
Population would need to get back to 1950s levels to have farmland to do it. Too many mouths now, so they feed them factory chemicals and call it food.
Quality of life does not change for the rich only the poor. So they do not care about anything about people just there cash.
Read before you post..think you messed up.
Growth is a false God !
It is mathematically quite simple. You can't have exponential growth in a finite world. Just do the physical experiment. Take a box and fill it partly with water. Every day you are adding 10% more water to the box and wait till the box explodes.
make a video about the debt based monetary system
The guy has a kitchen garden, and wonders what growth is good for...
Why not improve things when one can? One learns and get better at making things. That is growth. Phones get better because for each step of improvement, new possible steps of improvement become apparant. It's the nature of life to improve.
How is the iphone 16 better than the iphone 15 though?
Heterochromia?? I saw it now.
I started to realise back in the early 2000's that every daily news report on every news channel wasn't actually for me (normal everyday working bloke) but was actually for the top 10 percent, GDP data is for those who own all the shares, own all the companies, own all the land, own all the property, and that isn't for the majority of us! No no no, not for me and you!
If everybody lived that “good life” described at the beginning, very soon, things like measles would come back, as there’d be no one making vaccines anymore.
and the much elderly will be dying earlier with no government support or healthcare services
so we would solve the housing crisis, food would be more nutritious and we would return to multigenerational households? Lol. To say that if all doctors up sticks we wouldn't have any vaccines is a facetious and strawman argument. people can work part time rather than 40hours a week and capitalism wont go away. youll be able to import.
Obviously 'everyone' isnt going to quit it all to run a farm, however there is a lot to be said for spending your weekends gardening to grow your own food. first year is very expensive for set up but next year is cheap. Don't hate on a lifestyle without trying it, and don't assume that the way we are now is the best way and the way it will always be. Bill gates thought there was no way the family computer would ever need more than 640kbs in memory in the 1980's.... Medieval peasants worked 150 days a year and paid max 10% tax annually.