GDP is largely sustained by debt (see Debt and Debt For Ever?). Its calculation actually includes the 'notional rent' which home-owners are deemed to pay themselves, which they would violently object to any tax-man touching.

The total value of the nation's housing is £ 4,000,000m (4 trillion pounds) - it rose 20% in the first half of 2007 before beginning to dip - which means that total national notional domestic rent is likely to be around £ 250bn/yr, a sixth of national 'wealth'.
Rising house prices have not actually created any real wealth.

They result from factors such as:
1. MPs granting themselves and oldies
    (see also CHAS Makes WILL and Hal Financially Independent);
2. Special tax concessions for property;
3. Too-cheap money for property unlike for real wealth creation (as in Germany);
4. Infra improvements by locked in tax slaves such as us
5. A NIMBY attitude to new homes (not in my back-yard), so few new homes:

Result? A sixth of GDP is founded on bullshit!
Adding water to bacon is bad enough, but the oldies scam of adding land and air into property bubbles is fraud - which later destroys our lives. This can not be allowed to go on.
OLDIES have become beasts, financial cannibals who consume their young. In the current jargon, personal and national debt is toxic junk as evil as IEDs blowing legs off soldiers and Afghan children.
Too right. So let this toxic junk be dumped. In special places: with the oldies, in their own properties...

What is to be done? We have to make level playing fields for all kinds of investments. A first step is to get all of us under 30's out of tax slavery (see Tax Freedom Day).

Oldies, like those MP and Lordship Don Corleones (Godfathers), must be exposed as property scamming extortionists. This should shame and force OLDIES into recycling their property loot - force them to reveal their true property wealth as a mix of value in buildings and land.

Forced by shame to recycle part of their property wealth, oldies will have to own up to the scam that is now in the spotlight, their highly toxic land value loot. Oldies will queue up to dump their land values on those with broad enough shoulders.

The result - land values have to be removed from GDP.

Nothing is created when land rises in value;
therefore no credit/debt ought to arise.

The illusion that GDP is rising led to today's BUST.

This year 2010 should be seen as the oldies final spasm. The end of the madness whereby the desperate OLDIE riddled Governments pump money into oldie run banks to prop up their share values and collateral hot air values (land values).


Gross Domestic Product (GDP) is a fundamental measurement of production and is very often positively correlated with standard of living.

If we look at the distribution of GDP per capita for the European Union we will see that it is not distributed equally [1]. It ranges from 25% of the EU-27 average (5,800 PPS) per inhabitant in North-East Romania to 336% (79,400 PPS) in the UK capital region of Inner London. Moreover, if we start talking about differences within a country, then the UK has the largest regional differences. Thus, Inner London has 315% of the EU-27 average, and Cornwall and the Isles of Scilly only 73%. London is one of the richest areas in the EU with its GDP per capita (in PPP) equivalent to $36,522 in 2008 (15.3% of the EU GDP).
London and Future for under 30's

As London is one of the richest European areas, then theoretically its dwellers should be happy to live there and experience its high standard of living. However, the reality Londoners face is different from what many expect. The cost of living in London is so high that most Londoners have to work more than 60 hours a week. They need a second job in order to cope with increasing cost of food, fuel, mortgages, and other household bills. Londoners apparently suffer more from stress-related factors leading to higher blood pressures, and therefore heart disease. They also seek relaxation in low culture, low cost excessive drinking.

The institute of family also bears heavy pressure. Mothering becomes a luxury for the middle classes. It is more and more difficult for mothers to spend even half days with their children. They need full time work, so resort to the help of childminders instead. Thus, if parents want kids they need more space, but then they have to pay the enormous mortgages devouring two incomes. This leads to the world when families with children and marriage are no longer attractive and too costly. Thus, the number of married couples in London fell by 4% in the past decade.

Therefore, in order to see the whole picture that represents the standard of living, we need to look more closely at such factors as real income per person and income inequality, poverty rate, access and quality of health care, quality of education. Apart from material standard of living, intangible aspects, such as leisure, safety, social life, environmental quality and physical health, can also be important in measurement the quality of life.







According to the statistics, 72 regions of the EU have GDP per inhabitant (in PPS) less than 75% of the EU-27 average with 25.5% of the population living in these areas (three quarters of them in new Member States, Croatia and the former Yugoslav Republic of Macedonia and one quarter in EU-15 countries). In other words, 72 regions with 25.3 % of the population achieved less than 75 % of the EU-27 average.

To improve the situation in inequality of GDP distribution in countries with lower economic growth, these countries need to catch up with those more developed. However, the catch-up process for the Member States and other areas continued until 2006 with at annual rate of about 1.5 percentage growth compared to the EU-27 average, is affected now by the economic crisis of 2008-2009.

According to the statistics for the beginning of the 21st century, half of the 10 countries with the largest regional differences are from the older Member States, plus Romania.