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It's funny you should mention GDP, because childcare is one of the iconic well-known examples of why it can be a misleading measure. If person A is paid to care
by makomk 7y ago
It's funny you should mention GDP, because childcare is one of the iconic well-known examples of why it can be a misleading measure. If person A is paid to care for person B's kids whilst they work, that results in higher GDP than if person B cares for their own kids and person A takes the job instead, even though exactly the same amount is being done, because caring for those kids is no longer a service that counts towards GDP under the latter scenario.
- bonoboTP 7y agoIsn't that a much more general argument? Anytime I do some garden work myself, fix some appliance myself, clean my house, buy groceries, cook my own dinner, do my taxes alone, drive my car myself, etc, I'm not increasing the GDP, but I would be if I paid for the respective service. Also note how in your first scenario both people earn money, in the second scenario only A does (ending up with more than what B had in scenario 1).