Why do we care about GDP? Isn't Net Domestic Product what's important?
This probably shows how much of an economist I'm not, but why do we care about Gross Domestic Product? Isn't it Net Domestic Product that matters, i.e,, the real value we create NET of the costs incurred to create it, any additional debt it collateralizes, etc.?
If a household or company is consistently spending more than it's taking in, no matter how much it's taking in, bankruptcy is inevitable.
Our government has the privilege of printing money, but if net productivity continues to decline, how can our dollars not become worth less?
Part of our privilege has to do with the fact that elites in other countries have run their countries further into the ground than the US – we started out with more value to burn through than they did, for one thing – so that the dollar still looks stronger by comparison; but once elites have pillaged all the real value here as well as elsewhere, there simply won't be anything left that's not already in their hands; at that point, I see no alternative to either revolution or starvation.
I realize the world economy is incredibly complex in many ways, but I don't see how that eliminates the fact that if you're eating more carrots than you're growing, fiat money or no, you're going to run out of carrots.
Reading suggestions welcome as well as any other kinds of explanation – thanks!
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