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Interesting point regarding the parable, thank you for sharing. If GDP does included anything stock, would that really be accurate? Not an expert, but isn't s
by bengali3 12y ago
Interesting point regarding the parable, thank you for sharing.
If GDP does included anything stock, would that really be accurate? Not an expert, but isn't stock priced on the future value of something (ie dependent upon future sales forecasts). since GDP is backward looking, i don't think it should be counted? stock could be used as a predictor of future GDP since the stock is trying to put a value to future sales.
Also, wouldnt that also double count certain sales? ie each iPhone sold would increase goods sold as well as the companies stock price?
- rayiner 12y agoIn this context, "capital stock" just refers to the accumulated wealth of the country, not shares of a corporation. It's the value of existing bridges, oil reserves, factories, etc. In the sense I'm using it, I'd even include human health (i.e. human capital).
- harryh 12y agoI seem to recall that in most estimates of the total capital of the US that human capital vastly exceeds all physical capital.
- rayiner 12y agoInteresting, I didn't know that. I guess it makes sense though. This report puts the value at $738 trillion: https://bea.gov/scb/pdf/2010/06%20June/0610_christian.pdf https://bea.gov/scb/pdf/2010/06%20June/0610_christian.pdf.