This is true for the private sector but doesn't address Kuznets's criticism regarding government expenditures. They are considered final consumption even though a large and growing component of them are, in Kuznets's view. intermediate good and should be excluded from final consumption as such.
On Wed, Mar 20, 2013 at 6:18 AM, Max Sawicky <[email protected]> wrote: > Regarding Bro. Walker's post on EconoSpeak, my understanding is that the > intermediate goods component of GDP is that portion of goods produced but > not consumed in production of 'final goods and services.' So I don't see > any double-counting there. > > By contrast, the ambiguity of household capital and the relevance of > uncounted, non-market amenities are well-taken. > > Across time, capital goods are certainly counted twice, initially as > produced, subsequently as services rendered (embodied in final output). I'm > not sure why this is a problem, seeing as how GDP is a measure of > production. Something durable is productive over a prolonged period of time. > > I do see the common use of GDP as a progress indicator to be politically > retrograde. > > > > > > > On Wed, Mar 20, 2013 at 6:14 AM, Max Sawicky <[email protected]> wrote: > >> In my limited reading about the accounts, the premise is that they are a >> measure of production over a given period of time, not progress or >> well-being. As a measure of production, in recent years there has been some >> effort to grapple with non-market amenities in the so-called 'green >> accounts,' published as an addendum and not integrated into the official >> Account. >> >> I'm of course aware of how often GDP is cited as an indicator of progress. >> >> >> >> >> On Tue, Mar 19, 2013 at 9:28 PM, Tom Walker <[email protected]>wrote: >> >>> The last time I saw Jonathan Rowe was in October, 2010. I was on a >>> writer's retreat at the Mesa Refuge in Point Reyes, California and Jonathan >>> dropped by to borrow the pick-up truck. We got into one of those intense >>> conversations you can only have with someone who has cared and thought long >>> and deep about the things you have cared and thought long and deep about. >>> >>> Jonathan died on March 20th of the following year. On a Saturday he came >>> home from the gym with a fever. The fever got worse so he went the >>> hospital. Sunday morning he died. >>> >>> Last week, when I heard that Jonathan's book, *Our Common >>> Wealth<http://jonathanrowe.org/common-wealth> >>> *, was out, I ordered a copy right away. Then I searched around on the >>> web and pinched a galley proof so I wouldn't have to wait for the shipping. >>> I was especially eager to read Chapter 12, "Accounting for Common Wealth" >>> and Chapter 17, "Reallocating Time." >>> >>> Back in 1995 Jonathan was one of the co-authors of an *Atlantic Monthly* >>> article, "If the GDP is up, Why is America >>> Down,"<http://www.theatlantic.com/past/politics/ecbig/gdp.htm> a >>> great riff on the title of Richard Fariña's novel, *Been Down So Long, >>> It Looks Like Up To Me*. I don't usually hoard old magazines – in fact, >>> I rarely even buy magazines. But I still have that October 1995 issue of >>> the *Atlantic*. >>> >>> Jonathan's article explained a lot of what's wrong with the economy and >>> what's wrong with economics: "Once you start asking 'what' as well as 'how >>> much' -- that is, about quality instead of just quantity -- the premise of >>> the national accounts as an indicator of progress begins to disintegrate, >>> and along with it much of the conventional economic reasoning on which >>> those accounts are based." >>> >>> Read more... >>> http://econospeak.blogspot.ca/2013/03/income-growth-and-double-counting.html#more >>> >>> _______________________________________________ >>> 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 > > -- Cheers, Tom Walker (Sandwichman)
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