[FoRK] In the face of record profits and disaster

Russell Turpin deafbox
Thu Sep 1 18:41:56 PDT 2005


Beberg:
>>GPD growth for the 4th quarter will be great. ..

James Tauber:
>Go read Bastiat[1]. Spending after disasters doesn't help the economy as a 
>whole..

And what does that have to do with GDP? Bastiat
correctly points out that repairing a window diverts
resources, had that window otherwise not been
broken. This is an argument not from opportunity
costs, which always are present, but about the
importance of counting capital. GDP doesn't do
that. To the extent that Bastiat is correct, the
GDP counts wrongly.




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