5 ms·

Imputed rents by homeowners are factored into services I believe. Correct me if I’m wrong.

Retric 3y ago
Rent in North Dakota averages $821/month, GDP per capita is 94k. Rent in UK averages 880$/month, GDP per capita is 46k. There’s nuances to these numbers, but the US economy is really strong in many ways.
- FirmwareBurner 3y ago
  But...free NHS healthcare? /s but maybe not really
  - Retric 3y ago
    Healthcare is one of the best arguments for PPP adjustments to GDP. The value of healthcare is defined in terms of results not how much is charged for those services.
    - FirmwareBurner 3y ago
      >The value of healthcare is defined in terms of results not how much is charged for those services. But how do you measure "healthcare results" then? Infant mortality? Life expectancy? Waiting times? Percentage of population who gets some sort of services regardless of quality? The quality of those services even though not everyone can get them?
      - Retric 3y ago
        Thus the debate. Though for healthcare outcomes including pain and suffering seems like the obvious choice. Getting an unnecessary MRI costs money but doesn’t provide any net benefit. As such treatments aren’t what’s valuable. Similarly preventing a Cholera outbreak via proper sanitation is more valuable than treating that outbreak. Defining GDP in such a way as to avoid the broken window fallacy is tricky.
gruez 3y ago
https://apps.bea.gov/iTable/?reqid=19&step=3&isuri=1&1921=survey&1903=289 https://apps.bea.gov/iTable/?reqid=19&step=3&isuri=1&1921=su... The GNI[1] grew from 18,388.0 in 2015 to 25,796.4 in 2022. The "Rental income of persons with capital consumption adjustment" component of that, which includes imputations, grew from 601.4 to 878.3 in the same period. From these numbers we can conclude that rental income growth only made up 3.7% of GNI growth. This doesn't support the claim that "the American economy is only "growing" because Americans are constantly reselling houses to each other for ever-increasing prices". [1] GNI is supposed to be equal to GDP in theory, but for various reasons they vary slightly. For the purposes of this discussion we can assume they're interchangeable.

Rent in North Dakota averages $821/month, GDP per capita is 94k. Rent in UK averages 880$/month, GDP per capita is 46k. There’s nuances to these numbers, but the US economy is really strong in many ways.

FirmwareBurner 3y ago
But...free NHS healthcare? /s but maybe not really
- Retric 3y ago
  Healthcare is one of the best arguments for PPP adjustments to GDP. The value of healthcare is defined in terms of results not how much is charged for those services.
  - FirmwareBurner 3y ago
    >The value of healthcare is defined in terms of results not how much is charged for those services. But how do you measure "healthcare results" then? Infant mortality? Life expectancy? Waiting times? Percentage of population who gets some sort of services regardless of quality? The quality of those services even though not everyone can get them?
    - Retric 3y ago
      Thus the debate. Though for healthcare outcomes including pain and suffering seems like the obvious choice. Getting an unnecessary MRI costs money but doesn’t provide any net benefit. As such treatments aren’t what’s valuable. Similarly preventing a Cholera outbreak via proper sanitation is more valuable than treating that outbreak. Defining GDP in such a way as to avoid the broken window fallacy is tricky.

gruez 3y ago

https://apps.bea.gov/iTable/?reqid=19&step=3&isuri=1&1921=survey&1903=289 https://apps.bea.gov/iTable/?reqid=19&step=3&isuri=1&1921=su... The GNI[1] grew from 18,388.0 in 2015 to 25,796.4 in 2022. The "Rental income of persons with capital consumption adjustment" component of that, which includes imputations, grew from 601.4 to 878.3 in the same period. From these numbers we can conclude that rental income growth only made up 3.7% of GNI growth. This doesn't support the claim that "the American economy is only "growing" because Americans are constantly reselling houses to each other for ever-increasing prices". [1] GNI is supposed to be equal to GDP in theory, but for various reasons they vary slightly. For the purposes of this discussion we can assume they're interchangeable.