Measuring GDP

in #gdp2 years ago

Well in my humble opinion GDP and the way we measure economic growth is to fixed around the dollar value of what is produced that we don’t really get an accurate understanding about f the value people are getting from it. If a rich person buys a superyacht and uses it a total of 5 times in the calendar year, GDP takes into account the entirety of the dollar value of that yacht when the value being gained in consumption is so little because it’s simply not being used. And the idea is that because the yacht is only counted once even if resold eventually the value gained from it will match the dollar value but I think that ignores the fact that things degrade and their value used up even when not actively consumed and overall it just makes no sense to say the economy is worth the value of future years use, it’s part of capitalism focusing so much on future expectations
This isn’t even getting into the very dumb stuff with GDP like how spending used to fix negative consequences like pollution is counted as more GDP, so it’s like you are not only not subtracting the costs from the size of the economy but actively including it as some good thing.