Liz Truss dreams of growth – but even if she pulls it off, it won’t help Britain | Michael Jacobs
by Michael Jacobs from Economics | The Guardian on (#64JM1)
Incomes have stalled while the rich get richer. It's clear the obsession with GDP has to change
Liz Truss was clear what she wanted. I have three priorities for our economy," the prime minister told the Conservative party conference last week: Growth, growth and growth." But her problem is that this is not actually clear at all.
The definition of economic growth is an expansion of national income, as measured by GDP (gross domestic product). Since the 1950s it has been the objective of more or less all governments to have GDP growing every year.
Michael Jacobs is professor of political economy at the University of Sheffield