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> This lowers GDP Disasters often increase GDP, because money spent repairing damaged stuff moves thru the economy. Of course that doesn't mean this spending i
by ElectricalUnion 2y ago
> This lowers GDP
Disasters often increase GDP, because money spent repairing damaged stuff moves thru the economy. Of course that doesn't mean this spending is productive or really is making the economy grow. Just one of the reasons GDP, as any other metric, has to be taken with a grain of salt.
- marcosdumay 2y agoAn active war provides plenty of damaged stuff to use all the repairing spending you can add on your spreadsheet. A disaster at the same time will just move the resources around.