The Genuine Progress Indicator (GPI) is an attempt to measure the real increase in economic welfare. The GPI measures the improvement in economic welfare – costs associated with growth. It is measured using the formula GPI = A + B – C – D + I A is income weighted private consumption B is value …
Readers Question: why should nominal GDP be corrected for the effects of inflation? Suppose your annual salary went from £20,000 a year to £40,000 a year. Does that mean you are better off? Can you buy twice as many goods? If there is zero inflation, if prices stay the same, then the answer is yes. …
Readers Question: Is it possible the phenomenon to have a relationship between GDP and house prices where an increase of the mean GDP to lead to decreased house prices? Yes, An interesting phenomena is that UK house prices have shown an increase during 2009 – despite a prolonged recession. Typically, in a recession, you would …
Readers Question: Is Real GDP per head a better indicator of living standards compared to growth of Real GDP? Why? Real GDP per capita shows the average income of a country. If Liechtenstein has 0% growth of Real GDP in 2008, average incomes will reamin $118,000. A country like India may have GDP per head …
Readers Question: If there is a increase in GDP why is development often unseen? Higher GDP means an increase in National Output and National Income but it doesn’t necessarily lead to economic development this is for the following reasons: Investment takes Time. It takes time for improvements in statistics like education and literacy rates. Higher …
1970s – The Decade That Nearly BROKE BritainWatch this video on YouTube Rubbish piled on the streets, record levels of strikes, an IMF bailout and runaway inflation. The 1970s has gone down in the popular imagination as a dark time, literally in the case of the 3-day week, when lights were turned off, but …
Just when you think it couldn’t get any worse, the threat of a global trade war has contributed to confidence in the UK economy plummeting to record lows. The IPSOS economic index is running at the lowest level since records began. But, it’s more than just international turmoil; dissatisfaction with the economy has been building …
Africa's Population Will Soar – Europe's Will CollapseWatch this video on YouTube A Huge Shift in Global Population is Coming – Africa To Overtake Europe. The world is going to change dramatically over the next 50 years. Currently, Africa has around 18% of the global population, but by the end of the century, this …