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GDP doesn't take into consideration public debt. If public debt is up 100% and GDP has barely changed - I don't think that's cause for celebration that GDP / h
by onlyrealcuzzo 5y ago
GDP doesn't take into consideration public debt.
If public debt is up 100% and GDP has barely changed - I don't think that's cause for celebration that GDP / hours worked = we are more productive.
I'm not saying this is the case. But people use GDP a lot to make points like this - and it's important to talk about how much public debt is increasing GDP.
- skywal_l 5y agoIf you are in a country where pensions are managed by the state, your contributions are considered taxes. If you are in a country with a private pension system, your contributions are in the GDP! The GDP is not a scientific measure. It is an ideological concept. It doesn't mean it is useless, but it should not be taken at face value.
- karatinversion 5y agoTaxed income isn’t subtracted from income in national accounts though...?