Economy

Drugs, prostitutes see UK pip France in world economy stats

Published time: December 26, 2014 14:46
Edited time: December 27, 2014 13:07

Reuters / Toby Melville

Britain is really getting it on in the ‘fun’ department: the prostitution and illegal drug industries have catapulted it past France to fifth place in the world economy tables. The sector seems to generally be a cure-all for economies in trouble.

Here’s the top-10 for 2014 in order: the US, China, Japan, Germany, the UK (from no. 6), France (from no. 5), Brazil, Italy (from no. 9), India (from 10) and Russia (from no. 8).

These are the figures as reported in the latest global economic tables from the Centre for Economic and Business Research (CEBR).

The UK is generating £11 billion in the drugs and sex sector alone.

But while a number of Britons like to have a good laugh about overtaking the French in whatever sector, there is a factor that may put a damper on that: France doesn’t include drugs and prostitution in its GDP statistics.

Screenshot from cebr.com

The Italians, however, do. And the Puerto Ricans are going as far as legalizing marijuana and prostitution simply tojump-start the economy, while Spain got a boost of 9 billio euro to its economy thanks to the illegal trades.

And as the CEBR also pointed out, Britons’ joy may be short-lived, as the French may snatch fifth place right back from them next year. As the London-based CEBR points out, France’s economy could still get larger, as the UK’s net worth is $2.852 trillion, and that is a tiny margin in such terms – France’s is only $1 billion smaller.

Reuters / John Vizcaino

Another point to consider here is that drugs and prostitution are relatively arbitrary sectors, and don’t really guarantee that the standard of living will be different merely because of the resulting monetary figure in that sector. As Tom Worstall points out on Forbes, “[the sector] might be interesting if you wanted to be able to prance and preen as a minister in charge of such an economy, but it makes very little difference to how the people live, that being the important point at issue here.”

As for CEBR, it agrees that specific measurements may no longer impact the picture much soon. It claims we are entering a “mature phase” of globalization, which will culminate in 2030. By then, “a new order” of things will prevail.

Manipulating statistics?

The economic figures, though, also act as a trick to convince people in the financial markets that Britain is successful economically, Tony Gosling, an investigative journalist, told RT.

“We have [in Britain] now a million people visiting food banks; the fact of the matter is people don’t have the money to spend. The only recovery has been for the rich shareholders and investors in property and big assets. So this is a rather cheap con to make people think the economy is successful,” he said.

Gosling also said that the Chancellor George Osborne’s austerity program is self-harming because the vast majority of people have less money to spend.

Source: http://rt.com/uk/217807-uk-sex-drugs-economy/