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Maybe the problem is that it's called Gross Domestic Product but we're talking about spending. Spending isn't producing. Sometimes spending promotes production,
by aaronbaugher 1y ago
Maybe the problem is that it's called Gross Domestic Product but we're talking about spending. Spending isn't producing. Sometimes spending promotes production, but may times it doesn't, and a lot of the stuff that gets counted as GDP is just moving dollars from one entity to another.
- greenavocado 1y agoYou are likely looking for Gross Value Added (GVA): https://www.investopedia.com/terms/g/gross-value-added.asp https://www.investopedia.com/terms/g/gross-value-added.asp
- ajross 1y ago> Spending isn't producing. Now you've ruled out lots of other stuff though. Is loaning money "production?" Is spending for services (like, software development!) "production"? Is investing in assets like real estate "production"? All those activities create wealth! Now you've got a definition where only primary production, like farms and construction and mining, have any value. And that's silly too. No, all economic activity creates wealth. The idea of "spending" being separate from "producing" only holds at the microeconomic level where you are playing a zero sum game with a single bank balance.
- totalkikedeath 1y ago[dead]
- deleted 1y ago[deleted]
- braiamp 1y agoThat's just a historical artifact of when the concept was created [0]. The thing can be measured by income, production (including intermediary products) and expenditure. The government component comes in the expenditure method. Economists don't differentiate between them as they are just looking at the same data with another perspective, we just don't care. [0]: https://www.economist.com/finance-and-economics/2013/12/21/petty-impressive https://www.economist.com/finance-and-economics/2013/12/21/p...
- emseetech 1y agoDo we not consider the multiplier effect?