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Is GPD even a useful measurement? Consider the following course of events:
>Year one you buy a product for 100 dollars
>Means of production are developed
>Price of said product falls to 50 dollars
>Year two you buy two units of the product, still only spending 100 dollars (adjusted for inflation)
When GPD is calculated the only thing measured is the amount of money spent. If you spend 100 dollars both years it will appear that you have consumed equally much during both years, despite the fact that you recieved twice as many products during year two. The economy could develop infinitely without any change in the GPD, or GPD per capita.
I mean, am I crazy? Why is this measurement so commonly used? It seems worthless. What am I missing here?
>Year one you buy a product for 100 dollars
>Means of production are developed
>Price of said product falls to 50 dollars
>Year two you buy two units of the product, still only spending 100 dollars (adjusted for inflation)
When GPD is calculated the only thing measured is the amount of money spent. If you spend 100 dollars both years it will appear that you have consumed equally much during both years, despite the fact that you recieved twice as many products during year two. The economy could develop infinitely without any change in the GPD, or GPD per capita.
I mean, am I crazy? Why is this measurement so commonly used? It seems worthless. What am I missing here?
