8 ms·
Well yes, but how suitable is GDP/capita as a measure? e.g. If you care for your own parents or children you have contributed nothing to GDP, but if you put the
by bodas 8y ago
Well yes, but how suitable is GDP/capita as a measure? e.g. If you care for your own parents or children you have contributed nothing to GDP, but if you put them in a nursing home or daycare then you have. If you grow your own food and eat it, you have contributed nothing to GDP, but if you buy it, you have. If you clean your kitchen you have contributed nothing to GDP but if you hire a cleaner then you have.
A country where your actions are judged on whether they improve improve GDP or GDP/capita would be a terrible place to live.
- yoran 8y agoI agree. My comment clearly shows my ignorance when it comes to macroeconomics so your reply is much appreciated.
- leg100 8y agoDon't forget that when you care for your own parents or grow your own food, that money you've saved by not putting them in a nursing home or buying food, can either be saved, invested or spent on something else. Lots of people spending lots of money may boost GDP in the short term, but if it isn't sustainable, then there will be a corresponding fall in GDP in future. GDP is actually a pretty damn good measure, and if it is slowing, then it matters to us all.
- falsedan 8y ago> that money you've saved Doing things yourself is not free: these tasks take time, which is then not available for other jobs.
- bassman9000 8y agoWell yes, but how suitable is GDP/capita as a measure? Pretty good indicator given its simplicity. https://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita https://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(PP... Is there a metric as simple as that that correlates as well with quality of living for a majority of the population?
- njarboe 8y agoGDP might best be thought of as a measure of how much economy there is to be taxed. A government can effectively raise taxes by getting more people to outsource their needs.