5 ms·
A significant fraction of wealth is difficult to track because asset value isn't "real" until there is a transaction that places a value on it, which the govern
by jandrewrogers 3y ago
A significant fraction of wealth is difficult to track because asset value isn't "real" until there is a transaction that places a value on it, which the government does track. Until those transactions happen, any estimates of asset value are notional and may not be remotely realizable in a real market.
- ldjkfkdsjnv 3y agoExactly, people underestimate how high those asset values are. The owners of said asset are borrowing against them, not selling.
- dxbydt 3y agowhen i took econ, there were a host of gva shenanigans that made it amply clear how asset values null out. canonical question - when you marry your cook, what happens to gdp ? accepted textbook answer - gdp goes down because cook was paid income to cook your food. now she is your wife. if your wife cooks food for you there is no transaction. no invoice. no line item. gross value added has gone to zero.therefore gdp goes down. but you are still eating! well, cause the person who’s doing the cooking now is your wife, not a paid cook.
- selimthegrim 3y agoKurt Gödel’s shade chuckles.