this post was submitted on 31 Oct 2024
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Explain Like I'm Five

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ELI5: Why should a minimum wage worker care about GDP growth? (programming.dev)
submitted 1 week ago by Tamo240@programming.dev to c/explainlikeimfive@lemmy.world
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Following the budget announcement in the UK, why is the media obsessed with the predicted growth being 0.2% lower, instead of applauding the much needed investment in our public services? Does it really matter that much?

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[–] NoneOfUrBusiness@fedia.io 2 points 1 week ago (1 children)

Adding to what everyone else said, while GDP growth in one year doesn't really matter much except if it's really big or negative (i.e. shrinking economy) over time it can lead to big differences between different economies. No or little GDP growth is what we call a stagnant economy and for what that looks like in a first world country take a look at Japan. In short, though, it's not a fun time.

[–] Tamo240@programming.dev 2 points 1 week ago

Makes sense, but to me going from 1.5% to 1.3% on a prediction for 3 years in the future seems like a pretty insignificant difference, especially since it will probably change between now and then.

£22B for the NHS is the best news I've heard in a while, and even then it is only barely keeping it in line with previous investment as a % of GDP. This investment is sorely needed so if taxes have to go up to pay for it they have to go up. If we want growth rejoin the EU and then our taxes can come down again, but none of the major parties are willing to have that conversation.