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GPD is an estimate that relies on most people being rational. A company that pays contractors to do nothing but dig up holes and fill them back up again will q
by antisthenes 3y ago
GPD is an estimate that relies on most people being rational.
A company that pays contractors to do nothing but dig up holes and fill them back up again will quickly go bankrupt, so most people aren't going to engage in such enterprise.
Just because you found a way to hack the GDP in an online argument doesn't immediately throw its usefulness in the real-world.
- MichaelZuo 3y agoRepeatedly digging up the same place is a relatively common real world scenario, such as when multiple utilities need to be installed or repaired on the same stretch of ground. e.g. repairing a water main, then laying some underground electrical cables, then laying some fiber optic wire. Due to inefficient coordination, country A may have the same patch of ground dug up and filled three times. Whereas country B, more efficient, only has to dig once, do all the work, then fill it up once. So country B records lower GDP but in fact ends up slightly wealthier.
- antisthenes 3y agoI certainly agree that different countries will not only have different levels of efficiency, but also different accuracies in their GDP measurement. Shadow economies also exist and comprise different % in different countries.