The problem is that GDP includes government employees salaries even if they are regulators and such, who do not produce anything - in fact, they often hinder real productivity.
I dug into this in a post earlier this tear. GDP is a misleading statistic when look at the details even though - in general - higher GDP in a country correlates with richer and better
Every kind of waste boosts the GDP like the petrol (gas) that you burn moving at 2mph in gridlocked traffic and the wear and tear on brakes and gearboxes in stop start traffic.
Good point. I hadn’t thought of it that way - although I’ve often thought of how costly grid-locked traffic is, in terms of truck and equipment time loss, and wasted man-hours.
Good stuff Al, keep it coming.
I dug into this in a post earlier this tear. GDP is a misleading statistic when look at the details even though - in general - higher GDP in a country correlates with richer and better
https://ombreolivier.substack.com/p/what-is-the-wealth-of-a-nation?r=7yrqz
Enjoyed this one Al. Thank you.
Every kind of waste boosts the GDP like the petrol (gas) that you burn moving at 2mph in gridlocked traffic and the wear and tear on brakes and gearboxes in stop start traffic.
Good point. I hadn’t thought of it that way - although I’ve often thought of how costly grid-locked traffic is, in terms of truck and equipment time loss, and wasted man-hours.