Author: David B. Smith
Publication date: 10 June 2009
The author claims that the Government's preferred market price GDP measure overstates national output because it is reported gross of indirect taxes and subsidies whereas factor-cost GDP which excludes all indirect taxation and subsidies is a better yardstick for analysing the Government's spending burden. The report states the ratio of general Government spending to national income will be at its highest level in 2010 since World War 2. The author predicts Labour's fiscal policies will lead to 1970's style stagflation.