Comment by vkou
2 years ago
> My capital being misallocated is not relevant to GDP?
It's not. If I steal a million dollars from you, the net impact on GDP is ~0. Hell, if you were keeping it in your mattress, and I spend it on drugs and parties, GDP will actually go up.
GDP is a useful number, but it's not the only useful number.
If you steal 1 million out of my payroll account, GDP might go down because I might close my shop, for example. It really is not so simple.
Could one carefully construct examples, sure, does that scale - not so much.