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There are easier ways. I'll write a poem and sell it to you for $50 trillion and you draw a picture and I'll buy it for $50 trillion from you. We could get this
by criddell 2y ago
There are easier ways. I'll write a poem and sell it to you for $50 trillion and you draw a picture and I'll buy it for $50 trillion from you. We could get this done today and bump GDP by $100 trillion.
- saulpw 2y agoSales or income tax will be a problem though.
- onlyrealcuzzo 2y agoNot if you sell in a state without income tax. And I imagine someone creative can probably find ways to make this not classify as income.
- criddell 2y agoTrue. We'll probably have to make the poem and picture about Jesus and do it through our new church in New Hampshire.
- 0cf8612b2e1e 2y agoSolve the deficit at the same time!
- arunabha 2y agoI hear the standard practice is to have the IP of the poem owned by a foreign entity(Ireland is pretty popular) and then for the US entity to pay a royalty of $50 trillion to the foreign entity so that the net revenue in the US is zero. I believe it has it's own name - The double Irish.
- ummonk 2y agoYeah but then that only contributes to the GDP of Ireland, not the US. Not coincidentally, Ireland has one of the highest GDP per capita in the world.
- lotsofpulp 2y agoThis only works within the European Union because the EU rules allow it. It would not work between the US and Ireland.
- lotsofpulp 2y agohttps://www.bea.gov/system/files/2020-04/GDP-Education-by-BEA.pdf https://www.bea.gov/system/files/2020-04/GDP-Education-by-BE... >Who calculates GDP? >Economists at the U.S. Bureau of Economic Analysis estimate GDP using thousands of data points gathered by other federal agencies and some private data collectors. I presume these economists would ignore outliers such as that example, especially ones that would result in unrealistic sales tax or other tax liabilities. They have a spreadsheet showing sources here: https://www.bea.gov/data/gdp/gross-domestic-product#:~:text=Gross%20Domestic%20Product%2C%204th%20Quarter%20and%20Year%202024%20(Second%20Estimate)&text=Real%20gross%20domestic%20product%20(GDP,real%20GDP%20increased%203.1%20percent. https://www.bea.gov/data/gdp/gross-domestic-product#:~:text=...
- JumpCrisscross 2y ago> I'll write a poem and sell it to you for $50 trillion and you draw a picture and I'll buy it for $50 trillion from you. We could get this done today and bump GDP by $100 trillion Nominally, yes. Real, no. (In practice, given the barter resemblance of the trade, there would be no impact.)
- gitfan86 2y agoWhy is it real GDP when a government contractor makes a PDF report, but isn't real GDP when I make a poem?
- sunnyps 2y agoBecause money paid to the government contractor results in a person (persons?) getting paid along the way and then a large part of that flows into the real economy via consumption / spending. In your $50 trillion poem example, no money can possibly flow into the real economy because you simply do not have $50 trillion to pay anyone - you're just describing a wash trade of a worthless $50 trillion IOU note not unlike a NFT or crypto memecoin. Best case is that the poem is worth something non-negative.
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- zellyn 2y agoThat's the point.
- JumpCrisscross 2y agoGDPNow tracks real GDP.
- zellyn 2y agoAh, thanks! Interesting. How does it know which is Real and which is poems?
- gruez 2y agoI doubt this sort of chicanery actually happens, or would actually work.
- bugglebeetle 2y agoI see you’ve never heard of the market for fine art.
- edm0nd 2y agoalso NFTs
- frumper 2y agoThat's great for money laundering, but you'd have to pay taxes on it. Good luck.
- gruez 2y agoYou might not agree that a blank canvas is a $100k "art piece", but assuming both parties are sincere, what's the issue? It's not really any different than some luxury brand selling a $50 (being really generous here) t-shirt for $500.
- sadeshmukh 2y agoTheir worth is inflated and their whole suite of same artist work increases in value.
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