{"id":392,"date":"2005-10-24T20:24:14","date_gmt":"2005-10-24T14:54:14","guid":{"rendered":"http:\/\/www.ravikiran.com\/2005\/10\/24\/gdp-growth-not-gdp\/"},"modified":"2005-10-24T20:24:14","modified_gmt":"2005-10-24T14:54:14","slug":"gdp-growth-not-gdp","status":"publish","type":"post","link":"https:\/\/www.ravikiran.com\/blog\/classic\/200510\/gdp-growth-not-gdp\/","title":{"rendered":"GDP growth, not GDP"},"content":{"rendered":"<p>Dilip D&#8217;Souza makes a plausible sounding point <a href=\"http:\/\/dcubed.blogspot.com\/2005\/10\/inefficiency-boost.html\">here<\/a>.  At first I thought that he was <i>committing<\/i> the good old <a href=\"http:\/\/en.wikipedia.org\/wiki\/Broken_window_fallacy\">Broken Window fallacy<\/a>.  Many others in his comments section thought so too. But a closer reading will make it clearer that he is in fact <i>pointing out <\/i> the Broken Window fallacy. To be precise, he is pointing out that the GDP calculation fails to correct for the broken window problem. <\/p>\n<p>If you haven&#8217;t clicked on either link, here is the problem in short. If you break my window glass, I need to replace it. When I pay for the new window, it contributes to the GDP. If you had not broken my window glass, I would have done something else with my money and the country&#8217;s GDP would still have gone up &#8211; and that is Dilip&#8217;s point. According to him, the calculation  fails to distinguish between the contribution to GDP from such inefficiencies and the contributions from things that will actually make people happy.<\/p>\n<p>Is Dilip right?<br \/>\n<!--more--><br \/>\nNo. But but which part is wrong and why?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dilip D&#8217;Souza makes a plausible sounding point here. At first I thought that he was committing the good old Broken Window fallacy. Many others in his comments section thought so too. But a closer reading will make it clearer that he is in fact pointing out the Broken Window fallacy. To be precise, he is [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts\/392"}],"collection":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/comments?post=392"}],"version-history":[{"count":0,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts\/392\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/media?parent=392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/categories?post=392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/tags?post=392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}