3 ms·
GDP is an excellent example, I think. Basically, it measures the total flow of wealth inside a country. If everyone behaves rationally this is a good proxy for
by choeger 6y ago
GDP is an excellent example, I think. Basically, it measures the total flow of wealth inside a country. If everyone behaves rationally this is a good proxy for wealth as a whole. But what happens if the government would setup a group of companies that trade immaterial or trivial products amongst each other at absurd prices? The faster that group trades, the higher the GDP. A metric has become a goal.
- TT3351 6y agoOne issue with GDP: how do you define wealth? It's hard to incorporate more abstract assets like social trust or environmental conditions (latter can have direct impacts on things like tourism)