I am reposting this from the Commonspace website, which is mainly targeted at a Scottish audience, who published it yesterday afternoon:
ECONOMIC EXPERTS Professor Richard Murphy
Hmm. And in more detail:
Murphy argued that there are other measures which would better reflect how well the economy is doing in tangible terms: “We now know that GDP is a poor indication of well-being. In particular, the share of wages in GDP has been falling steadily over time whilst that of profits has been rising.
“It is the increase in profits that have pushed up UK GDP as a whole – reflecting the activity of the City of London – whilst real wages have been stagnant or falling when adjusted for inflation. If you want to know what is really happening in Scotland look at employment data, average wages and changes in them, and how this data compares to the UK.
Ah, yes, the economic expert. Wages aren’t the important part, the labour share is. Further, there’s no evidence at all – that we’ve seen at least – that the profit share is rising compared to the labour share. There is evidence that the labour share is falling as a result of a rise in the mixed in come and subsidies and tax share.
But then that would require actually understanding the national income accounts, something that an economic expert appears not to need.