24 December 2005
It’s unbelievable that anyone should be talking positively about GDP growth deriving from rebuilding things destroyed in Hurricane Katrina. A clear example of specialised knowledge superseding rather than integrating with common sense. If you replace something lost, there is no net gain in wealth. Temporary GDP growth would happen if funds were diverted from savings/investment into rebuilding rather than diverted from other consumption. Hardly a positive. When we suffer losses, including degradation of environment, drops in literacy, epidemics, etc, this should be subtracted from GDP.
Posted by Manicboy on Saturday, December 24, 2005