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Right. I wish we had a better metric than GDP for capturing the downstream impacts of an industry. Say a town grows up around a single manufacturing plant. T
by mywittyname 2y ago
Right. I wish we had a better metric than GDP for capturing the downstream impacts of an industry.
Say a town grows up around a single manufacturing plant. That plant might only account for 30% of the town's GPD because people use their wages to buy food, housing, etc. But when that plant closes up and 90% of the towns income disappears, it's hard to argue that the plant only contributed 30% of the economy in that case.
GPD != economy. GPD describes how money is spent, not necessarily in what order it is generated.
- hollerith 2y agoDoes the notion of a GDP even make sense for a town? I've never seen it applied to any unit except nations as a whole (or the EU). I suspect you need to collect reliable information on imports and exports and capital flows to calculate GDP, and a town can't collect it because it doesn't have, e.g., a customs bureacracy.
- chollida1 2y ago> Does the notion of a GDP even make sense for a town? Yes, of course it does. Why wouldn't it? https://en.wikipedia.org/wiki/List_of_cities_by_GDP https://en.wikipedia.org/wiki/List_of_cities_by_GDP