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If I run around town smashing windows with a rock, GDP goes up. Computing value more accurately than financial markets is not difficult: the bar is on the floor
by wizzwizz4 11mo ago
If I run around town smashing windows with a rock, GDP goes up. Computing value more accurately than financial markets is not difficult: the bar is on the floor.
- orangecat 11mo agoIf I run around town smashing windows with a rock, GDP goes up. Not generally. Window repairmen get higher incomes, but the rest of the economy has less consumption and investment.
- erin_lave 11mo ago> If I run around town smashing windows with a rock, GDP goes up. I don't believe that's true. I believe that's called the "Broken Window Fallacy" in Economics.
- machomaster 11mo agoBreaking windows DOES increase GDP, just like the parent said. The argument ( https://en.wikipedia.org/wiki/Parable_of_the_broken_window https://en.wikipedia.org/wiki/Parable_of_the_broken_window ) only argues that not all GDP increase is good, because of waste of resources, because of the opportunity cost. That's why measuring success only by GDP is a bad idea.