@daemonchan

4 weeks ago

They just increased GDP by $40 (of course only calculating this small exchange - not the original purchase or the total/yearly GDP increase).

Which brings me to a joke. Two economist are walking down the forest, named economist #1 and economist #2. #1 says, "I dare you to eat shit for $100". #2 says, "yes" and gets $100! Then #2 says "I dare you to eat shit for $100". #1 says, "yes" and gets his $100 back. #2 says, "wait, did we just eat shit for no reason"? And #1 says, "no, of course not! We just increased GDP by $200".

Basic Keynesian economics works on this principle. In the great depression, government projects were started for the sake of moving money around to influence inflation and unemployment. However, nothing productive was created, maintained, or gained. Economist described the government strategy as paying several people to dig a hole, and a different group of people to fill the hole the next day after.

A successor to this same idiotic monetary theory (not keyesian economics - but after) was for the government to simply give people money (and skip the non-productive work) hoping that they could spend it and then tax it, which means the money would go back to the government anyways. This, also stupid - yet real strategy - was called helicopter money.

I know this video was a joke. But having learned economics in school, I often think that videos like this is more education than satire. It's almost academic - because real economic theory and general accounting is bazar and bewildering.

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