Growth depends on people having money to spend. Do you need a pay rise?

If people do not have spending power, businesses will not invest, innovate, or hire. It really is that simple.

This video breaks down the real sequencing of growth and explains why politicians have got everything wrong. Pay rises aren’t the reward for growth; they are the precondition for it, because people without money to spend cannot ever drive the growth politicians crave.

Take a look at our poll below: https://www.youtube.com/post/UgkxjLmMkzQ1tvnI9xmK1EA190ijETK3su7O

Funding the Future event: https://www.eventbrite.com/e/funding-the-future-conference-tickets-1976575960907

00:00 — Growth myths and the “jam tomorrow” mistake
01:05 — Why living standards must come first
02:10 — The orthodox story politicians get wrong
03:20 — Spending, investment, and the real order of events
04:35 — Innovation needs upfront demand, not promises
05:45 — Purchasing power as the true driver of growth
07:00 — How insecurity kills demand and stalls the economy
08:10 — AI, productivity, and the false promise of jobless growth
09:25 — Concentrated wealth and collapsing spending power
10:40 — Why multiplier effects are breaking down
11:50 — The four forces locking in stagnation
13:00 — Redistribution as the new condition for growth
14:10 — The role of the state: income security and care
14:45 — Conclusion: dignity first, or permanent stagnation

TRANSCRIPT
A transcript for this video is available at: https://www.taxresearch.org.uk

IF YOU WANT TO WRITE TO YOUR MP ABOUT ISSUES IN THIS VIDEO
If you want to write a letter to your MP on the issues raised in this blog post, there is a ChatGPT prompt to assist you in doing so, with full instructions, here. https://www.taxresearch.org.uk/Blog/2025/06/20/chatgpt-prompt-for-a-letter-to-your-mp/

HOW TO SUPPORT US
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ABOUT RICHARD MURPHY
Richard Murphy is Emeritus Professor of Accounting Practice at Sheffield University Management School. He is director of Tax Research LLP and the author of the Funding the Future blog. His best-known book is ‘The Joy of Tax’.

This video was edited by Thomas Murphy.

RICHARD MURPHY ON BLUESKY:
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ON MY BLOG: http://www.taxresearch.org.uk/Blog/

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