Re:Britain’s statisticians fix a blunder and find a bigger e...
by RandomLensman on Tuesday September 05, 2023 @03:41PM
(#37396746)
Net negative sum would by definition lower GDP.
[ Parent
| on HN ]
Re:Britain’s statisticians fix a blunder and find a bigger e...
by vkou on Tuesday September 05, 2023 @03:56PM
(#37396938)
GDP is a proxy for 'amount of work done that people were paid for'.
If I pay Fat Tony to break your legs, and then you pay a doctor to put them back together, this whole adventure increased GDP, but is a net-negative-sum activity.
"People have to do more work to accomplish the same amount of results" isn't a worthy goal in itself.
Re:Britain’s statisticians fix a blunder and find a bigger e...
by RandomLensman on Tuesday September 05, 2023 @03:59PM
(#37396970)
And me not working due to broken legs is somehow not relevant to the GDP? My capital being misallocated is not relevant to GDP? I think your example is quite likely to lower GDP...
Re:Britain’s statisticians fix a blunder and find a bigger e...
by orwin on Tuesday September 05, 2023 @05:01PM
(#37397684)
Unless you earn more than the 200k the doctor was paid plus the 50k Fat Tony rightfully earned, the GDP grew.
Re:Britain’s statisticians fix a blunder and find a bigger e...
by RandomLensman on Tuesday September 05, 2023 @05:38PM
(#37398118)
You might want to think this through some more.
Re:Britain’s statisticians fix a blunder and find a bigger e...
by vkou on Tuesday September 05, 2023 @06:00PM
(#37398367)
> My capital being misallocated is not relevant to GDP?
It's not. If I steal a million dollars from you, the net impact on GDP is ~0. Hell, if you were keeping it in your mattress, and I spend it on drugs and parties, GDP will actually go up.
GDP is a useful number, but it's not the only useful number.
Re:Britain’s statisticians fix a blunder and find a bigger e...
by RandomLensman on Tuesday September 05, 2023 @06:21PM
(#37398598)
If you steal 1 million out of my payroll account, GDP might go down because I might close my shop, for example. It really is not so simple.
Could one carefully construct examples, sure, does that scale - not so much.