You’re kind of right that GDP is strictly a measure of economic productivity, and a lot of people look at it to represent a lot of other things like the size of the economy, the health of the economy, how well citizens are doing, etc.
However, you are dead wrong on this point:
If I pay you and then you pay someone else and then that person pays me the same amount we’ve increased the GDP without actually doing anything.
It’s possible that, you’ve “increased the GDP without actually doing anything” if you’re each not doing anything actually useful (see the broken window fallacy). However, in most case, each of those steps resulted in a useful service or product.
However, in most case, each of those steps resulted in a useful service or product.
I dunno if I’d say that, really. “useful service or product” is inferring a lot about the context in which these transactions are done, it doesn’t really open up the box, there. Is gambling a useful service to have access to, for instance? What about, say, setting everyone about buying a big suburban house, a car, running out a ton of asphalt to these places, putting out utilities to them that are both financially insolvent in the abstract and also take up too many resources for what they are? Like, I dunno, if we’re considering the alternatives, there, which incur much less consumption, and thus, much less trade, the alternatives that cost a whole lot less, I would say that the idea that this is a useful measurement really at all begins to totally fall apart. I dunno. I maybe wonder if, say, free healthcare might be thought to decrease the GDP of a country simply because less money is being thrown around.
You’re kind of right that GDP is strictly a measure of economic productivity, and a lot of people look at it to represent a lot of other things like the size of the economy, the health of the economy, how well citizens are doing, etc.
However, you are dead wrong on this point:
It’s possible that, you’ve “increased the GDP without actually doing anything” if you’re each not doing anything actually useful (see the broken window fallacy). However, in most case, each of those steps resulted in a useful service or product.
I dunno if I’d say that, really. “useful service or product” is inferring a lot about the context in which these transactions are done, it doesn’t really open up the box, there. Is gambling a useful service to have access to, for instance? What about, say, setting everyone about buying a big suburban house, a car, running out a ton of asphalt to these places, putting out utilities to them that are both financially insolvent in the abstract and also take up too many resources for what they are? Like, I dunno, if we’re considering the alternatives, there, which incur much less consumption, and thus, much less trade, the alternatives that cost a whole lot less, I would say that the idea that this is a useful measurement really at all begins to totally fall apart. I dunno. I maybe wonder if, say, free healthcare might be thought to decrease the GDP of a country simply because less money is being thrown around.