In the past few years, the UK has seen a rise in the tax burden, but at the same, the UK has seen a reduction in the average rate of economic growth. Is low growth leading to a higher tax burden or is it the high tax burden which is itself contributing to sluggish growth? …
Since 2008, the UK’s growth rate has slowed down sharply. Before 2008, productivity grew at 2.2%, but in the past 15 years, it has averaged just 0.5%. It is not just the UK which has seen a slowdown in productivity, but the UK has definitely fared much worse. It has become known as the UK …
Politicians often promise tax cuts can lead to higher productivity, higher economic growth, and even pay for themselves through a boost to long-term incomes. These promises may chime with the electorate who tend to prefer promises of tax cuts. But, do tax cuts really increase economic growth? There are two impacts of lower tax. Increasing …
Wage growth is a key factor in determining living standards, aggregate demand and inflation. If wages increase faster than inflation, then households will be able to afford more goods and services. Real wage growth = nominal wage growth – inflation. In the post-war period, apart from short-lived recessions, real wage growth has been positive, growing …
Over the course of history, the world has seen rapid population growth. It has enabled a rich diversity of culture, technology and improved living standards. However, population growth is increasingly coming at a cost – in particular to the environment. High population levels are contributing to the depletion of natural resources and causing widespread pollution. …
Readers Question: What is the difference between growth and development? Can a country experience economic growth without development? In summary Economic growth means an increase in real national income / national output. Economic development means an improvement in the quality of life and living standards, e.g. measures of literacy, life-expectancy and health care. Ceteris paribus, …
Economic growth means an increase in real output (real GDP). Therefore, with increased output and consumption we are likely to see costs imposed on the environment. The environmental impact of economic growth includes the increased consumption of non-renewable resources, higher levels of pollution, global warming and the potential loss of environmental habitats. However, not all …
A look at the relationship between economic growth and exports. Readers Question: How would an increase of economic growth lead to an increase in exports? Also, does the increase only happen just in a fixed period of time, or increase in one period is likely to affect the future? Economic growth doesn’t necessarily lead to …