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Percentage of GDP seems like a really awkward measure. Government takes dollars to run and budget makes for a good approximation of size. With GDP, imagine some
by simonsarris 6y ago
Percentage of GDP seems like a really awkward measure. Government takes dollars to run and budget makes for a good approximation of size. With GDP, imagine someone invented an amazing technology that 10x'd the GDP of a country. Would you expect the gov budget to 10x in line? That would seem like a terrible capture of resources.
(imagine say, the internet, etc)
- Nasrudith 6y agoIt still measures effective ROI - and traditionally growth in GDP is accompanied by growing needs. It is true that it is fuzzy - different needs scale differently as well. A 10x GDP rise would almost certainly cause an explosion in demand for other services as well with or without the influx caused by the growtg.