• Boomer Humor Doomergod@lemmy.world
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    6 days ago

    GDP measures the value of all goods and services produced in a country. A legal scam can hide as a service and get counted.

    This is why cars are good for GDP but mass transit isn’t, because a lot more cost goes into a car than a bus on a per rider basis.

    The same goes for health insurance. Simply paying a doctor for services is far less GDP than paying an insurance company who then pays the doctor after taking a cut.

    Once you realize what GDP measures a lot of what countries do makes sense.

    • 14th_cylon@lemmy.zip
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      6 days ago

      if i burn down your house, the gdp grows, because lot of people now have work rebuilding it.

    • michaelnik@lemmy.world
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      5 days ago

      I remember this discussed in my economics class 20y ago… Whether housewives work should be in GDP. One would hope economists move forward from there.

    • MinnesotaGoddam@lemmy.world
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      6 days ago

      Yup. But, that dollar changes hands far more times in the society with higher costs. That’s a good thing, assuming costs don’t dwarf income