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There is certainly a usefulness in separating government spending and private spending in our economic health measures. For one, measures like GDP are often use
by heisgone 1y ago
There is certainly a usefulness in separating government spending and private spending in our economic health measures. For one, measures like GDP are often used to evaluate the confidence and the general well-being of our economy. High Government spending tend to indicate the opposite, as Keynesian economics would mandate. More so, it invite manupulation of those measures by politicians, who can increase deficits to boost their "success". When it comes to spending like Education, those should be fairly constant relative to the population, in a developed country. We also have other mechanics to discuss their health status since they are largely public funded and subject to political debate. Perhaps a good measure would be the GDP minus public deficit minus credit card debt increase.
- cjoelrun 1y agoGiven that we print dollars and other countries demand on dollars make that ok for now -> We can make bricks out of the paper money and call that GDP. More money brick factory jobs!
- spwa4 1y agoThe whole point of using economic metrics like GDP is that they are NOT politicized. You can argue to what extent that succeeded. Probably not 100%. But your suggestion is to increase politicization of GDP: change the figure to push a certain view on economic activity, as opposed to what the theory says, what's practical, and what actually happens in real life (even if the government pays a group of people to dig a hole, and another group to fill the hole back up, that's still economic activity and should be counted). That's moving things entirely in the wrong direction.