GDP is (or has become) a measurement of activity and consumption but not of capital accumulation and production.
In many cases, GDP is negatively correlated to savings. Higher savings (aka austerity) lead to lower GDP today, but higher GDP in the future.
In its worst case, GDP growth could be completely based on credit, eliminating the capital basis of a country (example Greece).
Western countries saw rising housing investments based on more...
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Category Archive: 6b.) Bawerk
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