Why country's GDP is quite irrelevant number, frankly..

Welcome to the Precious Metals Bug Forums

Welcome to the PMBug forums - a watering hole for folks interested in gold, silver, precious metals, sound money, investing, market and economic news, central bank monetary policies, politics and more. You can visit the forum page to see the list of forum nodes (categories/rooms) for topics.

Please have a look around and if you like what you see, please consider registering an account and joining the discussions. When you register an account and log in, you may enjoy additional benefits including no ads, market data/charts, access to trade/barter with the community and much more. Registering an account is free - you have nothing to lose!

bushi

Ground Beetle
Messages
968
Reaction score
7
Points
143
this comes from a newsletter I am subscribed to, and indeed, it was quite illuminating:

GDP as a concept is absurd. Government spending is counted as a positive. So a government that spends money digging holes, and refilling them is adding to its country's GDP.

Despite the accurate description of many government programs above - the whole concept above is fundamentally true. So, are you feeling better now, reading that GDP is growing/contracting, or whatever, as a measure of "economic growth"? It truly is meaningless macroeconomic variable, seemingly, and worse still - TARGETING it at some X% a year, is even more nonsense - trying to stimulate/manipulate the reality, to produce some abstract number, at the end of the year, a number that isn't even relevant?


Thoughts, anyone?
 
Back
Top Bottom