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MrGladstone

Prostitution And Gdp

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The BBC's Simon Jack told the Today programme that illegal drug use, and (legal) prostitution should now be added to GDP figures, which would add about £10 billion a year to the country's productivity. 

 

He said (I think) that about £6 billion of this was from sex work. 

http://www.bbc.co.uk/news/business-29042385

 

With these figures taken into account, it turns out the recession was not as bad as previously thought, and the UK probably did not have had a "double dip" recession( (let along a tripled dip). 

 

He said the average spend per client visit was £67.

 

These statistics are of course probably completely bogus. They are most likely based on the same figures as estimates put out in May, which our friend Brooke Magnanti criticised here 

http://www.thebaffler.com/blog/zombie-statistics-on-sex-work/

(It's a "Fermi problem" ie one of estimation, and the input data is probably very wrong)

 

Also, I'm not sure how adding an estimated figure to every year's data would iron out dips in the GDP, unless they have a good reason (or preferably actual data) to think that spending on sex went up during the recession.

 

Brooke suggests they probably based their estimates on looking at Punternet.

 

Still, some people will have fun with the statistics.  

Back in May, Tim Worstall worked out a prostitute's salary to be about £25,000.

http://www.forbes.com/sites/timworstall/2014/05/31/adding-5-billion-to-uk-gdp-for-prostitution/

 

He also suggested that the pay rate per sex act is about 2 hours of an average labourer's pay.

 

The obvious conclusion is that, if there are 30 million men in Britain, then we are spending on average £300 per year. 

 

This is a very poor figure, for all sorts of reasons which Brooke spells out. 

 

But I'm a little ahead of my year's quota  already (£430). 

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On Mumsnet they're already wringing their hands over the government being so amoral as to want to include these figures.

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I seem to recall that the idea of using these figures came from Europe.

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On Mumsnet they're already wringing their hands over the government being so amoral as to want to include these figures.

 

 

Thanks for the heads up - their threads on this subject are always good for a laugh while I have a coffee break.

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Well done those chaps. At 6 billion a year, the piggy banks of the male population of the country are taking a pounding.

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The very idea of this shows why the EU and UK are economically broken.

 

GDP should reflect the real wealth CREATED by the economy.

You create wealth by activities like mining, farming, fishing.

These generate stuff you would not otherwise have.

 

If a Russian oil-baron comes here, shags a girl and gives her £100 we have captured part of the GDP of Russia for the benefit of the UK.

 

But if I walk up the street and shag the same girl, all that happens is wealth shifts from me to her. The UK GDP does not benefit.

If I drive to see the same girl then I consume some GDP by using up the effort of the oil industry.

 

The Indians, Chinese and other expanding nations understand this and are busy depleting our wealth.

 

In Europe and the US we have forgotten it and expect to survive by selling each other wothless stocks and bonds.

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But if the girl is Thai, EE or other European, the money goes abroad, so is that  a drain on the economy? However if she spends the money on shoes, is that good? But if the shoes are made in China, what then?

It gets so complicated but boils down to that old saying, "we cannot live by taking in each others washing."

I think it is better if we stop paying with money and give them Clarks shoe vouchers!

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[but if I walk up the street and shag the same girl, all that happens is wealth shifts from me to her. The UK GDP does not benefit.

If I drive to see the same girl then I consume some GDP by using up the effort of the oil industry.]

 

But a proportion  of what you pay goes out into the economy. For a start she will be purchasing condoms, wet wipes, tissues lubricants plus laundry. All of which generates employment for others and helps the economy.

 

So guys keep shagging for Britain. Think of the boost to the economy if we all have one extra shag a year.

 

 

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Only £25,000- £30,000 per annum. I thought it would be more than that.

Some escorts charge £200-£300 per hour, they will see about at least five clients a day.

That will be circa £1500 per day, working four to five days a week.

Modestly £4000-£6000 per week , they would have to pay agency a percentage and rent for flat

or hotel, they would still make more than the estimated figure "Forbes" claims.

Excuse me if I've been too invasive on wg's finances or correct me if I'm wrong.

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See, its so hard to understand wealth. Thats why we keep getting poorer.

 

When the girl uses condoms she CONSUMES our wealth. This is especially so if these items were imported.

I may have created employment for shopkeepers, postmen etc but this is not wealth creation.

 

If she were not consuming them the maybe we could have exported them to China and got some of our wealth back.

As it is we flushed our wealth down the toilet.

 

This relentless process will end in productive countries owning everything and we will just be hugely in debt to them.

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I assume those girls who run straight books are included in the GDP figures as it goes through the HMRC

 

the black market is no doubt big indeed - as it is with all cash in hand professions

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The very idea of this shows why the EU and UK are economically broken.

 

GDP should reflect the real wealth CREATED by the economy.

You create wealth by activities like mining, farming, fishing.

These generate stuff you would not otherwise have.

 

If a Russian oil-baron comes here, shags a girl and gives her £100 we have captured part of the GDP of Russia for the benefit of the UK.

 

But if I walk up the street and shag the same girl, all that happens is wealth shifts from me to her. The UK GDP does not benefit.

If I drive to see the same girl then I consume some GDP by using up the effort of the oil industry.

 

The Indians, Chinese and other expanding nations understand this and are busy depleting our wealth.

 

In Europe and the US we have forgotten it and expect to survive by selling each other wothless stocks and bonds.

Whilst simplistically It seems true that you have to sell something with added value to another country for your country to get richer, this is only a small part of the story.

 

Most wealth is not created by doing this but rather by improving the life and infrastructure of the country in question.

 

This may seem counter intutive but if i put it his way-

 

The world is richer than it was 100 years ago, a lot richer even after inflation.

 

We do not trade with other planets, therefore we can only trade with ourselves.

 

So you can see by trading with yourself it makes you richer, (it's all to do with the interaction of money supply, debt, time and profit, and is far to boring to explain here)

 

what is true for the planet is also true for a country. and when you analyse the detail you find internal trade is actually the biggest driver of riches.

 

Don't believe me, look at America, a country richer now than it has ever been and yet for every year since the Ronald Reagan it has imported more than it has exported.

 

So for all those unbelievers, those nice ladies of negotiable virtue do there bit for making the country a richer and better place everytime they lie on their back and "think of England" even though they don't produce anything other than happiness.

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This would be the reason that every year Congress has to vote an increase in the budget deficit, I suppose.

 

You have swallowed the usual western myth, that will end in us all being enslaved to the Chinese

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