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GDP

A quick note on a key item of jargon: GDP stands for gross domestic product. It is simply the total of the output of all the nation’s people in one year sold to others (in addition, there is charitable output, work at home and acts of kindness to family and friends). Thus the value of all the cars manufactured is added to the value of all the fridges manufactured is added to the value of all the haircuts and so on. Basically, what was paid for them. Mature economies reckon they are doing well if they grow the quantity produced by 2.5–3% per year; developing Asian economies reckon that if they produce only 5% more one year than prior year they are doing badly.

To give some perspective, UK annual GDP is around £1,500 billion, USA annual GDP ...