Are traders part of the economy?

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Derek27
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Joined: Wed Aug 30, 2017 11:44 am
Location: UK

I don't know much about economics, but if we all had a really good year and made a lot of money, would it have any effect on GDP, or are we just insignificant bums, economy-wise, because we don't pay tax?
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Euler
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Joined: Wed Nov 10, 2010 1:39 pm
Location: Bet Angel HQ

I'm sure we contribute via the multiplier effect.
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ShaunWhite
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Joined: Sat Sep 03, 2016 3:42 am

Insignificant in scale, and being an exchange then if "we" did well then others in the population wouldn't (net zero), so the only effect of a good year for us is larger Betfair profits from the extra commission, some of which are eventually distributed as dividends to overseas investors.

..in short no. We don't provide services or manufacture goods, or add value to anything. We have no product to contribute to the national "product".
Anbell
Posts: 2005
Joined: Fri Apr 05, 2019 2:31 am

Entertainment/recreation is clearly a product
RoyJay
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Joined: Mon Jul 18, 2022 8:16 am

Betting exchange traders are vital to both the economy and keeping the country running in times of crisis.

If traders are so insignificant, why was everybody outside clapping for us during lockdown?!
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LeTiss
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Joined: Fri May 08, 2009 6:04 pm

We still contribute even if we don't pay taxes
However, I pay NI Class 3 contributions

But, if we're making a living here, then we are still contributing to the economy - we all buy food & drink, pay Council Tax and have mortgages, or rent etc
RoyJay
Posts: 59
Joined: Mon Jul 18, 2022 8:16 am

Yeah I’d agree with the above.

It doesn’t matter how you make your money, so long as you are spending it, then you are part of the economy.
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Derek27
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Location: UK

RoyJay wrote:
Thu Sep 08, 2022 6:55 am
If traders are so insignificant, why was everybody outside clapping for us during lockdown?!
:lol: :D
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Trader724
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Joined: Fri Dec 27, 2019 11:22 pm

Whenever money moves it contributes to the economy.
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alexmr2
Posts: 766
Joined: Wed Sep 26, 2018 12:32 am

Potentially if you take money from someone who wasn't going to spend it and then spend it in the economy, but otherwise traders don't produce any product.

I suppose trading money in a pool of betting money is different to car dealers, art dealers and estate agents as they produce a middleman service to an extent. It's more like the stock market or foreign exchange.

Traders are traitors that take money from their fellow humans in a zero sum game but philosophically I don't see an issue with that, as it could be worse if we were weapons traders that supply guns to terrorists for a profit
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