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GDP growth is a questionable metric even for wealth. For example, if two housewives join the workforce by cleaning each other’s now unattended houses, GDP show
by AnHonestComment 6y ago
GDP growth is a questionable metric even for wealth.
For example, if two housewives join the workforce by cleaning each other’s now unattended houses, GDP shows a large increase even though the situation is (arugably) a net loss for everyone involved.
- limaoscarjuliet 6y agoThe difference is they have to pay tax on what they earn, so they are technically contributing to the society.
- epicureanideal 6y agoBut where would that money come from? If they both clean the other person's house for $20, where does $5 in taxes come from? (Answer: from the other income earner.). So the "contribution to society" doesn't just magically appear when we make this a commercial transaction.
- limaoscarjuliet 6y agoYup, they just decided to give away some money to the society (via govt taxes). Not saying this is good, just saying there is a difference.
- AnHonestComment 6y agoYes, both families face an increased tax burden. However, there’s no new income: each family is paying $20 and making $15 for net -$5. Increasing costs for decreased benefit (eg, neither family is cared for during transit times) is why I referred to it as a net loss.