More Problems for GDP

Not all of the arguments here are correct, but it shows you the declining validity of government statistics for real life. It is true that we obtain tremendous value from all the free goods of the digital age such as apps, Twitter, and Facebook and are not measure in GDP. However, they do forget to mention that Apple, Twitter, and Facebook do “spend” money into GDP when they buy things, hire workers, and pay the power bill. There ain’t no such thing as a free app.

Caution: the author does raise the robot bogey at the end of the article where “consumers” are made better off by these free technological goods and workers are made worse off, as if both groups were not the same people!

HT: JRH

See here for “Gross Domestic Freebie” in the New York, its free.

Comments

  1. Home cooking will destroy the US. Upcoming Thanksgiving dinners will go a long way toward improvishing us all.

    A home cooked meal converts lower priced, raw, commodity ingredients into delicious dinners. All well and good, except that this adds little to GDP. We would have much more GDP if people stopped cooking at home, instead buying everything from restaurants and delicatessens.

    Thanksgiving is a wonderful opportunity to increase GDP. Instead, about 100 million people will assign unpaid work to themselves to cook lavish meals which would add $100′s per family if bought from professionals. Employment would boom.

    End the madness. Uncap the aggregate demand now suppressed by home cooking. The government should genearally ban home cooking and subsidize restaurant eating, if we are to benefit from higher spending, full employment, and the end to unpaid work at home in dangerous and unsanitary conditions.

    Up with GDP, at all costs!

    (Sarcasm. Is it hard to tell?)

    EasyOpinions

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