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>If I babysit your kids and you pay me 1.000.000$, and you watch my kids and I pay you 1.000.000$, we just created 2.000.000$ in GDP. This isn't the case with
by logicchains 3y ago
>If I babysit your kids and you pay me 1.000.000$, and you watch my kids and I pay you 1.000.000$, we just created 2.000.000$ in GDP.
This isn't the case with purchasing-power adjusted GDP, which is specifically adjusted to account for the actual purchasing power of people's money.
- PeterStuer 3y agoWould that still not in the above toy example lead to 0$ vs 2.000.000$/(some factor)?
- logicchains 3y agoYes, but it's not going to have any meaningful impact on the overall gdp because it couldn't happen at scale (requires one party to have 1.000.000$ to spend in the first place).
- VaxWithSex 3y agoAll money is fiat.
- logicchains 3y agoYes, but the average Joe Bloe can't print money to pay a babysitter, only the government can.
- PeterStuer 3y agoBut isn't this exactly what has been happening on a macro scale with the 'service economy'? We drew ever larger segments of people and activities into the world of financial transactions because of the massive amount of rentseeking money to be made in this environment. We doubled the amount of time the average family had to spend in salaried activity, and we passed start twice as now all activities that were previously selfserviced were also 'market' procured as no-one had time/energy left to take care of this after a long workday.