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Does it even count in there though? Fraud isn't a normal transaction. It's the same as theft, which is simply a transfer from one person to another. An act of f
by HPsquared 1y ago
Does it even count in there though? Fraud isn't a normal transaction. It's the same as theft, which is simply a transfer from one person to another. An act of fraud or theft doesn't represent creation of value the way profit from legitimate transactions do for "black market" goods/services (even if the goods/services are illegal).
- spacebanana7 1y agoIf we're just talking about the formula of GDP = gov spend + investment + consumption + net exports, then scamming foreigners would be captured under the "net exports" category. Similar to remittances, which are quite significant components of GDP for some countries. Admittedly it's doubtful whether this kind of activity would be captured by official statistics.
- HPsquared 1y agoRemittances aren't counted towards GDP either. The funds can contribute indirectly, as consumption or investment, if spent locally. This $15B didn't make it that far, though.
- IanCal 1y agoThat’s a good point, transferring of assets isn’t counted - although if it’s imports perhaps that’s different. The cost of scamming may be counted, paying people to perform scams certainly could be depending on the type of calculation you do. I know it’s a bit of a get out clause but it’s at least not obvious to me that this wouldn’t contribute, certainly the illegal nature is not a blocker for being counted in GDP.