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The 83 year olds aren't having dollar bills ground up and pumped into their bloodstream. That money is being paid to doctors, hospitals, medical manufacturers,
by jjk166 3y ago
The 83 year olds aren't having dollar bills ground up and pumped into their bloodstream. That money is being paid to doctors, hospitals, medical manufacturers, etc. All of these entities are then going and spending those dollars on the inputs they need. Increasing hospital capacity is as legitimate a thing to spend money on as reducing traffic congestion.
More to the point though, if you spend $20k keeping grandma alive, is she any less alive because that $20k was loaned versus pulled out of her mattress?
GDP is not a measure of how optimally money is being spent, it's just a measure of how much economic activity is going on.