Economic cretin alert!
A handbag? For £500? Get real Whether it\’s our own crazy consumerism or the billions spent on bail-outs, the world is still in denial about the limits of growth.
Jeepers. Economic growth is defined as the value added in the economy. A £500 handbag adds more value than a £35 one (crazy though that thought might seem it is in fact the way that we measure economic growth).
Since when did it become acceptable to pay £500 for a handbag? This is now the going rate for a must-have bag, I am told by my younger colleagues. That is way over the top for me. I recently demurred at paying £35 for one from a market near work.
Thus if we all buy £500 ones we get more exonomic growth than if we all buy £35 ones….and we don\’t increase the resource use either.
Yes, I know, this all seems rather odd and I\’m not trying to claim that handbags are the centrepiece of a modern economy. Just that the limit to economic growth is the limit of the value we can add, not a limit imposed by the resources available.