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

bushi

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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?
 
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