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This assumes the denominator is fixed, ie., that there is no net change to the size of the economy; which is false.
by mjburgess 6y ago
This assumes the denominator is fixed, ie., that there is no net change to the size of the economy; which is false.
- jtolmar 6y agoPercentile and mean are both divided by the same number. The size of the economy has nothing to do with the point you're replying to.
- mjburgess 6y agoThen you've misunderstood their point. Their claim is there's a zero-sum occurring. A + B + C = 0 So that if A goes to A+1, with the sum still zero; then B,C must reduce. This thinking is mistaken as applied to an economy. The stability of this mean (ie., that the rate of change of the mean is zero) does not imply that anyone is loosing out. It is entire possibly, and likely, that the effect is caused by different rates of loss and gain that are not competing with each other at all.
- TheOtherHobbes 6y agoWhat does "change in the size of the economy" actually mean? In real terms? As almost everyone knows, GDP doesn't correlate particularly well with productive activity.