> GDP is a concrete measure that is difficult to fake
The best counter to that I've ever heard:
"Let's say I pay you $10M to eat a pile of shit, then for kicks you pay me $10M to eat a similar pile of shit.
You know what the end result is? The GDP has increased $20M, and we both have huge shit-eating grins".
> "Let's say I pay you $10M to eat a pile of shit, then for kicks you pay me $10M to eat a similar pile of shit. You know what the end result is? The GDP has increased $20M, and we both have huge shit-eating grins".
If people were buying piles of shit for $10M, then that is what the GDP would be. That's not faking GDP.
This interpretation of GDP requires that price is equivalent to value. Good luck convincing anyone, even hardcore free market essentialists, of that notion.
LMAO I'm sure that sounded great in your head, but if that service was actually worth 10mm, both parties would have to pay taxes on that income when they report it to the gov't for inclusion in GDP. Yes this applies even if no money changed hands: https://www.irs.gov/taxtopics/tc420
And yes there are workarounds, but clearly it's not that easy to manipulate GDP. If anything, you want to underreport these numbers so you don't owe as much.
The best counter to that I've ever heard:
"Let's say I pay you $10M to eat a pile of shit, then for kicks you pay me $10M to eat a similar pile of shit. You know what the end result is? The GDP has increased $20M, and we both have huge shit-eating grins".
The GDP is laughably easy to fake.