GDP? Yeah, I know.....yawn

Well, our American philanthropist aka Trump has been throwing around accusations of European nations not paying their dues. Dues as agreed to finance NATO (North Atlantic Treaty Organisation). Figures banded about are 5% of GDP (Gross Domestic Product). But what exactly are we talking about? What is GDP in particular? It measures the total value of all goods and services produced within a country's borders in a specific period. In order to compute GDP, economists employ three different approaches: income, expenditures, and production. Although each methodology offers a unique perspective, they should theoretically yield the same value for GDP.

  1. The income approach calculates GDP by adding up all the incomes in the economy, including wages, rents, interest, and profits. This approach is based on the premise that all income must come from the production of goods and services.

  2. The expenditure approach, also known as the spending approach, calculates GDP by adding up all the spending on final goods and services in an economy. This includes consumption by households, investment by businesses, government spending, and net exports (exports minus imports).

  3. The production approach, also referred to as the output or value-added approach, calculates GDP by summing the value of goods and services produced by different industries and subtracting the cost of goods and services used up in production. (from Tickeron.com)

So, now we know and if you understand it you’ll do better than either our PM, Starmer or NATO supremo, the Dutch wizard Rutte. As it is these two just mouth some figures of which they have no understanding how they were made but hope that everyone else will stand up and give an ovation.

The problem I have is this, OK let’s say we are going to pay 5% of GDP, how much is that exactly Mr Starmer? But more importantly did you realise it is an arbitrary figure which can change every month? Let’s say the figure is £25billion, the nation will have to find that money thus it is extra expenditure. It is NOT money coming out of the ‘fund’ called GDP, GDP is NOT a pot of money! On top of that the method is completely erroneous. Normally we would know what we need, we will have costed the needed purchases and these are extremely expensive. £3billion for a plane, how much cost a tank? Besides all of that it seems warfare itself is changing. So, we need costs worked out for the production of Drones! Millions of them. And lastly anyone trusting the present US administration? I would trust Judas before them.

There is not one western European leader who has said what exactly we need to do to safeguard the eastern borders of western Europe!

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