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I also like the example where if you break someone’s window and they fix it for $300, that’s at least an extra $300 in GDP.
by valval 2y ago
I also like the example where if you break someone’s window and they fix it for $300, that’s at least an extra $300 in GDP.
- adammarples 2y agoBut they would have spent the 300 on something else
- Jensson 2y agoNo, many people save their money.
- Sloowms 2y agoThe point is that someone who spent 300$ to be in the exact same situation as they were before but the gdp seemingly is doing well. So they could have had a window and a sofa but only have a window in the example. So the gdp is increased but the people are not better of. This example also cuts into personal efficiency going up. Not needing a car or burning gas because of a badly insulated house is negative for the gdp but good for the wealth of individuals.
- grecy 2y agoThe best example is: I give you $10,000 to eat a pile of shit. You give me $10,000 to eat a pile of shit. What's the result? Two shit-eating grins and $20,000 added to the GDP.