3 ms·
The best explanation I've heard: If I pay you $10,000 to eat a pile of horse manure, then you pay me $10,000 to eat a pile of horse manure we have: Created $2
by grecy 6y ago
The best explanation I've heard:
If I pay you $10,000 to eat a pile of horse manure, then you pay me $10,000 to eat a pile of horse manure we have:
Created $20,000 of "value" for the economy and increased GDP $20,000. That's all great for PR!
In reality we both just have s--t eating grins.
- skybrian 6y agoSo okay, fraudulent transactions exist. That doesn’t tell you whether a particular transaction is fraudulent. The shipping industry is useful and using it to ship bricks for some fraudulent scheme doesn’t change that. The value of a physical action isn’t inherent in the action itself, but rather depends on what purpose it serves.
- khazhoux 6y agoThis actually creates 1BTC.
- chmod600 6y agoWhile funny, that doesn't really apply here. We're exchanging an apple for an orange. That is a very reasonable barter transaction and I see no reason that it doesn't create value. In fact, the value is likely to be undercounted by GDP. People are taxed on income, so casual transactions like the orange-for-apple trade are likely to be left out of GDP simply because they are unreported. Your example is the opposite: over-counting GDP and the participants paying thousands of dollars in taxes.
- robocat 6y agoAnd unless you both pay your tax on your $10,000 income, you are defrauding the IRS (assuming you are in the US).