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Originally Posted by nomadking
And where does this "more output" go to? A higher total GDP, DOES NOT mean a better economy.
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I didn't say it would make a better economy, which is a subjective argument to make anyway, you were asking how it increases GDP. I said how. Now, you're trying to make the argument into something else which I am not arguing.
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Where does this money that is funding this alleged massive extra demand come from?
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Either abroad as the stuff we export, or from the banks or the Bank of England. The money supply is not finite and, very simplistically speaking, it should increase to much the value produced in the economy.
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You could let in 10m extra people, all on benefits, and the GDP would go up. But in no way whatsoever would the economy be better. The GDP per person would be further diluted.
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Yes, which is why at the start of this I said '
assuming they're working.'.
But during the period in which we had a lot of migration we did not see GDP being diluted, we saw it increase:
https://www.statista.com/statistics/...nited-kingdom/