Re:Emissions are no longer following the worst case scenario
by Dylan16807 on Friday May 26, 2023 @07:29PM
(#36090637)
> GDP doesn't count all "economic activity."
Right, which is why the insult in the post I quoted is getting things very wrong.
> GDP only considers the value of the final consumed goods and services, and rent is a consumed service. If you're a homeowner, they estimate your rent and use that instead.
I understand that but it's a notably flawed way of going about it. Prices in general can have a loose coupling to value but with rent it's extra bad. A small change in housing stock can trigger a massive swing in rent and GDP even though the service being delivered doesn't change.
Right, which is why the insult in the post I quoted is getting things very wrong.
> GDP only considers the value of the final consumed goods and services, and rent is a consumed service. If you're a homeowner, they estimate your rent and use that instead.
I understand that but it's a notably flawed way of going about it. Prices in general can have a loose coupling to value but with rent it's extra bad. A small change in housing stock can trigger a massive swing in rent and GDP even though the service being delivered doesn't change.