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ONS to include prostitution and illegal drug dealing in GDP figures

Community Veteran
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Registered: 27-10-2012

ONS to include prostitution and illegal drug dealing in GDP figures

Just reading about some changes to the Sep GDP figures, and I've seen they are now going to include prostitution and illegal drug dealing in the figures - http://www.ons.gov.uk/ons/guide-method/method-quality/specific/economy/national-accounts/articles/20...
I found the way they calculate the prostitution 'turnover' as somewhat comical:
Quote
Summary of Method for Prostitution
• The method is supply side
• Use point in time level to extrapolate current price and volume estimates
• Level: No. of active prostitutes(Eaves) x No of client episodes per week(Smekens & Verbruggen) x 52 x Average Charge Per Client(Punternet)
• Volume is extrapolated using the male population aged 16+ (Census)
• Price is extrapolated using CPI for Personal Services
• Other sources used to estimate intermediate consumption

The estimates are that the new figures will increase the published UK economy figures up by £65bn or 5% - http://www.theguardian.com/business/2014/jun/10/accounting-drugs-prostitution-uk-economy-gdp-eu-rule...
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Community Veteran
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

Quote from: AndyH
The estimates are that the new figures will increase the published UK economy figures up by £65bn or 5%
Handy in the run-up to a General Election.  Wink Cynical Moi?  Crazy
Community Veteran
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

It's ironic that it's being introduced because other EU countries already account for drug dealing and prostitution in their GDP figures. It will actually benefit the UK because of the way the EU budget is distributed.
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

Next thing we know there will be an additional section on the annual self assessment tax forms, receipts required.
Now Zen, but a +Net residue.
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

Reminds me of the time a colleague - passed away a long time ago - met a lady of the night in Moscow and obtained a receipt in Cyrillic which he duly submitted in his expenses.  Cool
Unfortunately he then made the mistake of bragging about it  Crazy
Community Veteran
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

At one of my first jobs after graduating, a lot of people used to go to the likes of Spearmint Rhino with clients and put that through as a business "entertainment" expense. The company name on the receipt gave no indication as to what the actual places were.  Smiley
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

If they wanted a bigger GDP jump they should have included MP's back handers and fiddles.
itsme
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

Quote from: AndyH
At one of my first jobs after graduating, a lot of people used to go to the likes of Spearmint Rhino with clients and put that through as a business "entertainment" expense. The company name on the receipt gave no indication as to what the actual places were.  Smiley

and which industry would that be? Hope it's not banking
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

Oooo....that was close Lips are sealed
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

Quote from: billnotben
If they wanted a bigger GDP jump they should have included MP's back handers and fiddles.

Grin Cheesy
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

What a coincidence:

Note that I have not linked this image to its source so there is little point grumbling..
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nanotm
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Re: ONS to include prostitution and illegal drug dealing in GDP figures

it never fails to amaze me that they finally figured out it was better to keep the drug money they seize and use it to bolster public services instead of just burning it as illegal contraband ......

but this new game of we've got more tarts n junkies so we have more cash than you do is just totally baffling, shouldn't a country be downplaying its illegal trades rather than boasting about just how much business is booming ?
just because your paranoid doesn't mean they aren't out to get you