Breaking the Chain

It was claimed on Twitter that the UK’s gross domestic product per person had fallen by “nearly two-thirds” since 1979.

That claim is false, and this article examines why.

Author’s calculations

A Twitter account asserted:

UK GDP Per Person (2019 Values):
1979: £89,460
40 years of selling public assets, social housing, private outsourcing later.
2019: £31,100
The neoliberal era has robbed the UK of nearly 2/3rds of it’s ability to generate income.

These statistics were shared over 600 times — and are false. It is based on the author’s own erroneous calculations.

Since GDP figures are published with the effects of prices already removed, the account wrongly attempts to ‘adjust’ for inflation.

Readers may note the year 2019 is incomplete. It would not be possible for such calculations — even if conducted correctly — to refer to ‘2019 values’. This claim is also contrary to Office for National Statistics figures, which already publish the UK’s GDP per person (using the chain volume measures).

The country’s GDP per person has grown by over 90% since 1979.