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The example he gave of GDP metrics going up when banks underpay interest on savings was wild. “Wow, these customers are effectively paying billions to the banks
by titanomachy 9mo ago
The example he gave of GDP metrics going up when banks underpay interest on savings was wild. “Wow, these customers are effectively paying billions to the banks by accepting low interest rates, they must be receiving so much value in return!!”
- verdverm 9mo agoYea, the reframing in the post is quite good My free checking account counts towards consumer spending, wtf? The number of examples the author provides is impressive
- matthewaveryusa 9mo agoI have a rolodex of quirky contrarian facts I like to whip out at dinner parties and this one is definitely a new one I'm adding to the stack. I'm still shocked at the mental gymnastics needed to make it sound rational, but from an economist's perspective it's the "rational actor" argument. "Surely they must love the service, why else would someone settle for less?"