Excellent explanation for how GDP is a false measure of the size of an economy. That understanding is key to understanding the intuitive notion that despite high GDP rates of growth real economic progress is not occurring. Thanks!
Loved this post. I had been trying to figure out why things didnt make sense and had hypothesized that there was no reason for the G in the GDP equation. after all, everything the government spends winds up in the economy and is counted there, so isn't that double counting? but I think you have done an excellent job of identifying the GDP problem. thank you
Keynes sold his “aggregate demand” nonsense to politicians, who loved any excuse to spend rather than economize.
Excellent explanation for how GDP is a false measure of the size of an economy. That understanding is key to understanding the intuitive notion that despite high GDP rates of growth real economic progress is not occurring. Thanks!
Loved this post. I had been trying to figure out why things didnt make sense and had hypothesized that there was no reason for the G in the GDP equation. after all, everything the government spends winds up in the economy and is counted there, so isn't that double counting? but I think you have done an excellent job of identifying the GDP problem. thank you