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It is a metric of success of an economy. And it's pretty good at that.
by tzfld 8y ago
It is a metric of success of an economy. And it's pretty good at that.
- jobigoud 8y agoMost natural disasters ultimately increase GDP and are good for the economy. It's a weird metric.
- refurb 8y agoDisasters increase GDP? How? The money spent rebuilding a country is money not spent on other things.
- selectodude 8y agoInsurance pays to rebuild, they’re using money that is not part of GDP and adding it to GDP.
- refurb 8y agoSure insurance money is a part of GDP. It’s either premiums paid or sitting as an investment that needs to be liquidated to generate funds.
- jobigoud 8y ago> The money spent rebuilding a country is money not spent on other things Money is created when needed (loans, etc.), it's not a zero-sum game. Money is invested in depolluting, rebuilding roads, etc. That contributes to the GDP, sometimes more than the destruction impaired production. For example rebuilding roads after an earthquake creates many jobs.