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> cancer patient is diagnosed, the GDP goes up. Is this how we measure economic progress? Yes, obviously so! Diagnosing cancer early is one of the best ways to
by nvm0n1 3y ago
> cancer patient is diagnosed, the GDP goes up. Is this how we measure economic progress?
Yes, obviously so! Diagnosing cancer early is one of the best ways to save someone from it. The cancer is there anyway, it's a natural occurrence. The economic activity that leads to and follows a cancer diagnosis is what economists call wealth: the things we do for each other than make each side mutually better off.
All the examples are like that. Nobody wants oil to spill, but accidents are a fact of life. The GDP created by mopping it up on the other hand leads to a cleaner environment, which is another form of wealth.
- HPsquared 3y agoI think it was more that the harm caused in these (presumably) avoidable examples is not counted negatively. Preventing cancer makes less GDP than curing it; smoothly transporting oil without incident makes less GDP than spilling it.
- nvm0n1 3y agoWhy does preventing cancer make less GDP than curing it? That would surely depend on how you're trying to prevent cancer. By prevent do you mean keeping a cancer somewhat under control? > smoothly transporting oil without incident makes less GDP than spilling it. Oil creates huge economic activity when used. It does no good spread over the ocean. The cleanup generates activity, but it's clearly far better for GDP to smoothly transport oil around than constantly lose it, if only because ships constantly sinking would cause people to transport things way less and so markets would be less efficient, yielding less wealth.