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Cake day: June 12th, 2023

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  • n2burns@lemmy.catoFuck Cars@lemmy.worldBoth is good
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    8 days ago

    Wrong. Most jurisdictions have Value-Added Taxes, including I’m pretty sure all places that call their sales tax GST (Goods and Services Tax). In the given scenario, as long as the businesses were making those purchases (as business expenses), they would take the taxes paid as ITCs (Input Tax Credits), and be left will a GST bill of NIL.

    Source: Here’s Canada’s info on ITCs. It’s pretty similar in other jurisdictions.


  • n2burns@lemmy.catoFuck Cars@lemmy.worldBoth is good
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    8 days ago

    You’re kind of right that GDP is strictly a measure of economic productivity, and a lot of people look at it to represent a lot of other things like the size of the economy, the health of the economy, how well citizens are doing, etc.

    However, you are dead wrong on this point:

    If I pay you and then you pay someone else and then that person pays me the same amount we’ve increased the GDP without actually doing anything.

    It’s possible that, you’ve “increased the GDP without actually doing anything” if you’re each not doing anything actually useful (see the broken window fallacy). However, in most case, each of those steps resulted in a useful service or product.