Re:Can Economic Growth Last?
by rayiner on Monday September 14, 2015 @09:20AM
(#10214886)
It's well-known that GDP is susceptible to the broken window fallacy because it doesn't measure destruction of capital. Consequently, it dramatically overstates the GDP of resource-rich nations. When Saudi sells a barrel of oil, that $75 is counted towards its GDP. But the actual value-add is $75 minus the value of oil in the ground, which is a much smaller number.
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