We do get the costs of creating the debt -- gambling casinos, accounting services, economists ....
Michael Perelman Economics Department California State University michael at ecst.csuchico.edu Chico, CA 95929 530-898-5321 fax 530-898-5901 www.michaelperelman.wordpress.com -----Original Message----- From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED] On Behalf Of Sabri Oncu Sent: Wednesday, September 17, 2008 8:48 PM To: pen-l Subject: [Pen-l] Re: Reality catches up with catastrophists Jim: > GDP is supposed to be the gross domestic Product, i.e., the amount of > goods and services newly produced during in a country (and sold > through markets) during a given year. If private debt appears as part > of GDP, it would only be the amount of labor services provided to > allow loans to occur. But that's not part of GDPI, which refers only > to the purchase of newly produced goods. We know these Jim. But, think about the newly produced debt Michael mentioned in his example: a bet on that the San Francisco 49ers will win the next two Super Bowls. Is this a "good" or a "service?" I don't know. But it is something newly produced and sold through markets. What is this bet and why does it not show in the GDP? Best, Sabri _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
