Economists put reason for divergence down to Brexit and Britain’s energy price guarantee

Snapshot of Eurozone inflation falls to 5.5% in sharp contrast to UK. Economists put reason for divergence down to Brexit and Britain’s energy price guarantee.

  • @emerty@feddit.uk
    1•1 year ago

    Fucking hell,

    GDP is one thing

    Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period by a country or countries.

    GDP per capita is a measure of productivity and living standards

    What Is GDP Per Capita? Gross domestic product (GDP) per capita is an economic metric that breaks down a country’s economic output per person. Economists use GDP per capita to determine how prosperous countries are based on their economic growth GDP per capita is calculated by dividing the GDP of a nation by its population. Countries with the higher GDP per capita tend to be those that are industrial, developed countries

    Once you’ve worked that out, tell me what the loss of productivity that the OBR is forecasting is down to.

    Hint, it’s comparative advantage. When you’ve learned what that is, let me know.

    • @G4Z@feddit.uk
      1•1 year ago

      Yeah I know what the difference is, I’ve just shown you that the OBR is referring to GDP when they walk about ‘long term productivity growth’ and nothing you have posted there contradicts that.

      Seems to be a pattern here, you say something incorrect, I point it out, and you throw insults.

      • @emerty@feddit.uk
        1•1 year ago

        Lol, no they’re not. Productivity is not GDP…

        And the 4% is over 15 years and is a result of loss of comparative advantage.

        If you have to compound an effect over 15 years to get 4%, the effect is fuck all.

        • @G4Z@feddit.uk
          1•1 year ago

          So why do Bloomberg put it at 100bn based on that 4% figure?

          If you have to compound an effect over 15 years to get 4%, the effect is fuck all.

          Yeah, sounds unlikely doesn’t it?

          Let me ask you, what do you think it’s cost the UK per year in billion pounds?

          • @emerty@feddit.uk
            1•1 year ago

            Yeah, sounds unlikely doesn’t it?

            But that’s what the forecast says. 4% of productivity lost over the long term of 15 years due to loss of comparative advantage

            https://obr.uk/forecasts-in-depth/the-economy-forecast/brexit-analysis

            But the forecast is for the cost, no benefit is included.

            The loss of comparative advantage is replaced, I’d argue, with competitive advantage which has a much stronger effect. The UK is no longer bound by the anti science regulations on genetic engineering and the new overly restrictive proposed regulations on AI

            GDP per capita is a ratio of GDP / population, so if you do more with fewer people, by using automation, robots and AI, your GDP per capita will grow…

            The 4% figure over 15 years is a difference of 0.29% to 0.27% productivity growth. Government policy has at least that 0.02% effect

            I predict a Starmer govt will be able to introduce policy that will offset the productivity loss just by investing in renewable energy, let alone any research universities’ innovations.