Drugs and Prostitution now used to Calculate (Fix) UK Gross Domestic Product Figures

Mark Twain once said "There are three kinds of lies: lies, damned lies, and statistics" , now the UK government look set to once again provide proof of that.

It has been announced that the office that calculates British GDP is to calculate the benefit to the economy of illegal drugs and prostitution which will add billions to the yearly figure , they've started the calculation with an adjustment to the 2009 GDP results adding 10 Billion imaginary pounds to the figure.

In its first attempt to measure illegal activity other than smuggling, the Office for National Statistics said prostitution would add £5.3bn to GDP in 2009 and illegal drugs would add £4.4bn.

The ONS breakdown reckons that each of the UK’s estimated 60,879 prostitutes took about 25 clients a week in 2009, at an average rate of £67.16. It also estimates that the UK had 38,000 heroin users, while sales of the drug amounted to £754m with a street price of £37 a gram.
www.ft.com...

How they've come to this conclusion is beyond me as no tax is paid in the black economy but the ONS say the new calculations (Fix) will add up to 5 per cent to British GDP.

Note to the Government.
Decriminalise and tax Marijuana and watch the GDP figures rise without falsifying the figures with heroin and prostitution guesswork.

Yeah well I'd be shocked if the US basket isn't comprised of GMO. Six in one hand, half a dozen in the other.

To be honest it's actually only fair if both be included. You can't ignore certain markets and pretend like they don't exist when they certainly do. Of course they shouldn't be calculated into tax revenue but definitely GDP.

They should also probably be legalized and regulated but that will be the day of course. There was a time when neither of these would ever even be considered to be illegal, the very thought, stupid or unimaginable.

Of course those days you were responsible for what you did, to yourself or others.

In any case, I find it ironic when governments try to legitimize what they deem illegitimate only when it suits their needs. A few times some nibnob has tried to go after "tax money" from illegal gains. Little do they know the state is in for a major dole out if black market dealers started claiming their "Losses" from the other branches of governments when they pinch them, bash down their doors or take all their money.

The whole thing makes your head spin.

Oh and who really profits off it all? Only one person ever ends up with the final count of dollar bills.... Think about that.

a reply to: boncho

Oh and who really profits off it all? Only one person ever ends up with the final count of dollar bills.... Think about that.

so somebody is cooking the books ....what a surprise

a reply to: gortex

It seems that with every ludicrous thing my government gets up to, I can now add amazement at their duplicity of putting these two things into our economic statistics.

Cameron is plain ineffective and one of the most inane men to stroll across our parliamentary floor, but this last thing beggars belief in his stupidity in that he thinks people will believe his statistics - especially in other countries when they discuss how well Brfitain is doing financially.

We don't need entertainment when we have this lot in power.

a reply to: gortex

How very realistic. Unfortunate, but realistic.

Can't imagine what the future holds.


F&S for an important find.

a reply to: boncho

I agree with this post. Black markets certainly contribute to national GDP. To pretend they don't exist is stupid. People are still spending their money in these markets and the people taking the money are turning around and buying legitimate things with it.

I also agree that both of those things should be legal and regulated.

This makes me wonder when the U.S. will do the same to prop up our play money. We seem to follow where ever the UK leads.

They must have gotten wind of this thread from last week, lol:

Socialism Doesn’t Pay: Britain is Poorer Than Any US State But Mississippi

a reply to: adjensen

We're not a socialist state though , we have a right wing dominated coalition government and have done since 2010.
Britain is poor largely thanks to the U.S sub prime banking scam.

I'm sorry but WHAAAAAAT?!?!?!??!

Last time I checked both drugs and prostitution were ILLEGAL. So now that they are adding this into the economy, does that by de facto standards legalize it, since its being accounted for as apart of helping the domestic gross?

Lawd, this is worse than the banker skimming 500 bills in Monopoly.