On Sun, 2009-03-22 at 09:22 -0800, Sandwichman wrote:

> I would go one step further -- and here is where we may disagree -- to
> say that GDP is intended to measure something like "real" transactions
> (or final consumption, if you prefer). If you and I share a car and
> every time I take it out I pay you the value of the car, $1000, then
> you pay me the value of the car when you take and the car changes
> hands three or four times a week, all those transactions don't count
> in GDP. 

If you change a bit your little car game: when I have the car keys
you pay me $1000 as a consultant and then I tell you where the
keys are (the "service") and vice versa then it does count in GDP
each time the keys change hand.

I believe goods are now less than one third of USA GDP.

Laurent



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