Answer to Question #294881 in Economics of Enterprise for tren

Question

to what extent do you agree on the statement " low economic growth and consumer spending are the biggest factors effecting wage on the UK

Answer 1

Basing on consumer trends historical data obtained from the World Bank datasets, the consumption expenditure function in the UK has been on the decline, since 2009. Economic growth rate on the other hand, has not only been on the decline for the past over 5 years, but also recorded the lowest of -9.69 in 2020, since before the 50’s. Wage rates for those in the working age, mean income. A flourishing economy, corresponds to increased wages. Increased wages positively impact the income of individuals and households, who then find motivate to increase consumption. In the case study however, the contrary has happened to the UK. For this reason, I to a great extent agree with that low economic growth and consumer expenditure effected largely wages in the UK.

Reference.

GDP growth (annual %) - United Kingdom. (n.d.). World Bank Open Data | Data. https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=GB

Final consumption expenditure (% of GDP) - United Kingdom. (n.d.). World Bank Open Data | Data. https://data.worldbank.org/indicator/NE.CON.TOTL.ZS?locations=GB