This calculation of growth is somewhat convoluted. To see where growth occurs and how it gets that increase is interesting and on the face of it could determine how to get it again in the future but it’s like trying to count raindrops to test how heavy it’s raining! A great achievement to know, but does it matter in knowing it’s been raining? Let’s start with the first misconception as I see it… what is ‘growth’? Is it GDP? Because part of the figures that calculate GDP is government borrowing. So the more we borrow the greater the GDP! Now I’m not sure about you but, I don’t think evaluating wealth by how much money you owe as opposed to how much money you have got is not s good measure! Back to ‘GROWTH’. It means different things to different people. If we were producing currency based on population then the more people means the more money! So a growth in population could lead to a growth in money supply. ( I often ponder if we have enough money in our economy to begin with to make it all work) too little money can explain a stagnant economy. Or does growth mean greater production? But that doesn’t necessarily mean increased profit. The gist of extra wages or staff numbers or costs of equipment could all reduce profit. Could growth be profit itself? Is it just as simple as to increase prices? Or is it production? Can producing more get you the growth needed? Or is it just borrowing more? As that increases GDP? Well you see the dilemma? How do you quantify and qualify ‘growth’ no matter what positive or negative or score it can be such a stab in the dark you can easily ‘lose count of the raindrops’. I think ‘growth’ means one thing to Rachel Reeves… ‘increased tax take’. She calls it growth and assumes it comes from ‘growing the economy’. Which tells me she hasn’t got a scooby doo what she thinks she means! She can’t even tell us what she really means! It’s more tax revenue!! That’s the growth she means. She just guesses it comes from our economy growing but honestly, that’s cobblers. As you have shown, it’s difficult to see with numbers what’s got to be done. And your conclusions shine a little light onto the cause and possible cure. Bit if you had just thought it through you would have reached a better conclusion in my view…. We don’t need to get our head wet to know it’s raining!… we can look out the window to see the clues!!… so if I may I’d like to help you. We are in debt to the tune of nearly £3,000,000,000,000.00 trillion pounds! So in reality we haven’t had ‘growth’ for some time now. Not proper growth. Just pretend growth. So here is a great reason to reevaluate your calculations. We haven’t had any growth…Rodney! ( don’t you just love Del boys truthful innocence) you conclude the rich are important and your right! You conclude that low tax economy’s to better! But you have that round the wrong way. “Economy’s that work well have low tax”. Thats the correct way round. The basics I assert for a working economy are just two things! … ‘MONEY’ and ‘SPENDING’. No economy will work unless you have MONEY to SPEND. A government needs to have tax revenue to pay its way otherwise it won’t … pay its way!!!! So from this gentle snd simple beginnings we must framework the economy to supply money and allow a free and fair exchange of work between us to exchange our work for money and then exchange that money for goods and services to complete snd start that cycle again and again as if it were… raindrops! The free market and capitalism are the vehicles of present choice to achieve that. So as to generate the cycle of paid work to exchange for paid work and to siphon off a tax to the exchequer. It’s not a difficult process to follow but, it seems most people can’t see it! But it’s there!! As we know raindrops or transactions happen everywhere every day! We don’t need to know each one but for now we know it happens. That’s the free market! And that’s our economy. So let me turn to tax. The government are expected to tax for the income we need to pay our way. It should be blatantly obvious that we are not getting enough tax revenue and haven’t done for a very long time. So successive Chancellors have increased tax rates to try and plug the gap. Without first making sure the economy can afford it! There is the issue. Just like your calculations it’s fine on assumptions that haven’t been corrected. You see that increases in taxes strangle our economy. But still they do it as they can’t see any other way. So our stagnant economy becomes even worse with added pressure. No wonder we are in debt to nearly £3tn if that’s the best we can do! So the question now is how can that situation be improved? The main things we need is money and spending. Our economy has less money in the tax paying pot so we are not paying enough tax! Why? Because the rich have all the money!! That’s why. It’s not rocket science! It’s piggybank economics! If we produce less and pay less tax it’s because the pot is devoid of most of its money!… we have allowed the free market to tip out of balance. We have allowed our money to disappear abroad and we allow it to be held outside our economy where it contributes not only no tax but no exchange of work! They say 95% of all money is held by just 5% of people. I’m not sure if that’s true but let’s assume it’s a reasonably fair guess. Then 95% of us are trying to earn and exchange and pay taxes on just 5% of money! There is the problem!…. Right there. We can’t pay taxes or ourselves if the pit is too low in MONEY to SPEND! The two things we need to pay our way! So there is the problem and cause. I can give you my path to reverse that if you want? Can we debate it??
This calculation of growth is somewhat convoluted. To see where growth occurs and how it gets that increase is interesting and on the face of it could determine how to get it again in the future but it’s like trying to count raindrops to test how heavy it’s raining! A great achievement to know, but does it matter in knowing it’s been raining? Let’s start with the first misconception as I see it… what is ‘growth’? Is it GDP? Because part of the figures that calculate GDP is government borrowing. So the more we borrow the greater the GDP! Now I’m not sure about you but, I don’t think evaluating wealth by how much money you owe as opposed to how much money you have got is not s good measure! Back to ‘GROWTH’. It means different things to different people. If we were producing currency based on population then the more people means the more money! So a growth in population could lead to a growth in money supply. ( I often ponder if we have enough money in our economy to begin with to make it all work) too little money can explain a stagnant economy. Or does growth mean greater production? But that doesn’t necessarily mean increased profit. The gist of extra wages or staff numbers or costs of equipment could all reduce profit. Could growth be profit itself? Is it just as simple as to increase prices? Or is it production? Can producing more get you the growth needed? Or is it just borrowing more? As that increases GDP? Well you see the dilemma? How do you quantify and qualify ‘growth’ no matter what positive or negative or score it can be such a stab in the dark you can easily ‘lose count of the raindrops’. I think ‘growth’ means one thing to Rachel Reeves… ‘increased tax take’. She calls it growth and assumes it comes from ‘growing the economy’. Which tells me she hasn’t got a scooby doo what she thinks she means! She can’t even tell us what she really means! It’s more tax revenue!! That’s the growth she means. She just guesses it comes from our economy growing but honestly, that’s cobblers. As you have shown, it’s difficult to see with numbers what’s got to be done. And your conclusions shine a little light onto the cause and possible cure. Bit if you had just thought it through you would have reached a better conclusion in my view…. We don’t need to get our head wet to know it’s raining!… we can look out the window to see the clues!!… so if I may I’d like to help you. We are in debt to the tune of nearly £3,000,000,000,000.00 trillion pounds! So in reality we haven’t had ‘growth’ for some time now. Not proper growth. Just pretend growth. So here is a great reason to reevaluate your calculations. We haven’t had any growth…Rodney! ( don’t you just love Del boys truthful innocence) you conclude the rich are important and your right! You conclude that low tax economy’s to better! But you have that round the wrong way. “Economy’s that work well have low tax”. Thats the correct way round. The basics I assert for a working economy are just two things! … ‘MONEY’ and ‘SPENDING’. No economy will work unless you have MONEY to SPEND. A government needs to have tax revenue to pay its way otherwise it won’t … pay its way!!!! So from this gentle snd simple beginnings we must framework the economy to supply money and allow a free and fair exchange of work between us to exchange our work for money and then exchange that money for goods and services to complete snd start that cycle again and again as if it were… raindrops! The free market and capitalism are the vehicles of present choice to achieve that. So as to generate the cycle of paid work to exchange for paid work and to siphon off a tax to the exchequer. It’s not a difficult process to follow but, it seems most people can’t see it! But it’s there!! As we know raindrops or transactions happen everywhere every day! We don’t need to know each one but for now we know it happens. That’s the free market! And that’s our economy. So let me turn to tax. The government are expected to tax for the income we need to pay our way. It should be blatantly obvious that we are not getting enough tax revenue and haven’t done for a very long time. So successive Chancellors have increased tax rates to try and plug the gap. Without first making sure the economy can afford it! There is the issue. Just like your calculations it’s fine on assumptions that haven’t been corrected. You see that increases in taxes strangle our economy. But still they do it as they can’t see any other way. So our stagnant economy becomes even worse with added pressure. No wonder we are in debt to nearly £3tn if that’s the best we can do! So the question now is how can that situation be improved? The main things we need is money and spending. Our economy has less money in the tax paying pot so we are not paying enough tax! Why? Because the rich have all the money!! That’s why. It’s not rocket science! It’s piggybank economics! If we produce less and pay less tax it’s because the pot is devoid of most of its money!… we have allowed the free market to tip out of balance. We have allowed our money to disappear abroad and we allow it to be held outside our economy where it contributes not only no tax but no exchange of work! They say 95% of all money is held by just 5% of people. I’m not sure if that’s true but let’s assume it’s a reasonably fair guess. Then 95% of us are trying to earn and exchange and pay taxes on just 5% of money! There is the problem!…. Right there. We can’t pay taxes or ourselves if the pit is too low in MONEY to SPEND! The two things we need to pay our way! So there is the problem and cause. I can give you my path to reverse that if you want? Can we debate it??