Re:Reinvigorating the most important battle in economics
by octbash on Sunday November 24, 2019 @02:46PM
(#21622814)
The quick answer to your broader question is that there are multiple ways of slicing how GDP is computed, and yes, economists are aware of them and have thought through the edge-cases as well as being aware of where the measures fall short.
E.g. in your example, see the Value-added approach: https://quickonomics.com/gross-domestic-product-gdp/
Re:Reinvigorating the most important battle in economics
by galaxyLogic on Sunday November 24, 2019 @03:45PM
(#21623249)
A good resource thanks. "It measures the total value of all goods and services produced".
But so then if I produce nothing but just sell something at profit which I already have is that part of the GDP?
If the value of my stamps-collection increases and I sell it at considerable profit is that an increase in GDP?
Re:Reinvigorating the most important battle in economics
by PeterisP on Sunday November 24, 2019 @03:55PM
(#21623328)
In general, the added value would be part of the GDP - e.g. a retailer would be considered to contribute its revenue minus the wholesale cost of goods, rent, salaries, etc which was already counted as produced by its suppliers.
If I sell you something does that count as part of GDP? If I sell my labor to a company does my selling of it become part of the GDP? Then the company sells the product I produced for it, is that added to the GDP as well?
Or is it only when a company sells something that it is counted as part of the GDP?