3 ms·
GDP does not go up on destruction. That's the broken window fallacy. https://www.investopedia.com/ask/answers/08/broken-window-fallacy.asp https://www.investop
by BenoitEssiambre 9y ago
GDP does not go up on destruction. That's the broken window fallacy.
https://www.investopedia.com/ask/answers/08/broken-window-fallacy.asp https://www.investopedia.com/ask/answers/08/broken-window-fa...
Reconstruction after destruction becomes part of GDP if it is performed but this reconstruction usually takes production resources that would have gone elsewhere otherwise. The person to pay for the reconstruction will spend less elsewhere.