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GDP is a terrible measure of wealth produced.
GDP is a terrible measure of wealth produced.
I think it's highly unlikely that 25% of all wealth ever created was created in 2020 during the midst of widespread lockdowns. If those new dollars don't represent something, they can only diminish the value of dollars.
I think it's highly unlikely that 25% of all wealth ever created was created in 2020 during the midst of widespread lockdowns. If those new dollars don't represent something, they can only diminish the value of dollars.
Indeed. I would be very surprised if actual wealth didn't significantly decrease.
Indeed. I would be very surprised if actual wealth didn't significantly decrease.
I like to explain it to people this way: the economy works just like grading on a curve. Adding 10 points to everyone's grade changes nothing. Adding 10 points to the grades of only the bottom half still doesn't really change anything.
The problem is that people don't understand that the economy works like grading on a curve, not on an absolute scale.
I like to explain it to people this way: the economy works just like grading on a curve. Adding 10 points to everyone's grade changes nothing. Adding 10 points to the grades of only the bottom half still doesn't really change anything.
The problem is that people don't understand that the economy works like grading on a curve, not on an absolute scale.
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