3 ms·
>GDP measures mainly market transactions. It ignores social costs, environmental impacts and income inequality. But GDP's role was never to measure income ineq
by DeathArrow 4y ago
>GDP measures mainly market transactions. It ignores social costs, environmental impacts and income inequality.
But GDP's role was never to measure income inequality, environmental impacts, diversity, affirmative actions. It was always an economic tool, not a SJW tool.
As an economic tool it just measures how well a country is able to produce and sell goods and services. And for that purpose I know no other better tool than it and it's derivative, GDP per capita adjusted for PPP.
- didibus 4y ago> GDP per capita adjusted for PPP What's the point of per-capita here? I've found personally this is the part that cause confusion. The per-capita makes it look like each person is equally participating in the gross production and receiving an equal income from it. Obviously that's false, the distribution is very uneven, so I've always wondered why we want it per-capita? If 1 out of 100 people produces 100% of the GDP and it's the same total GDP as some 10 person neighbor country, why adjust it by capita?
- DeathArrow 4y ago>why adjust it by capita Because we might want to measure efficiency and compare two economies of different sizes.
- didibus 4y agoBut what if capita doesn't map to efficiency? I feel the idea of making it per-capita seems a bit dubious, I really doubt that you get an even per-capita distribution, it's probably very skewed.