As I tried to post yeterday when your system accused me of being a spammer...;)....
GDP may increase, or decrease, due to Katrina. GDP came from the production that occurred in New Orleans; its destruction has caused that to be lost. If they abandon NO, GDP will drop. If they rebuild it with streets paved in gold, marbled halls, and $100k p.a. government jobs for every citizen, GDP will rise.
Of course, most likely something in between will happen. So we don't know if GDP will rise or fall as a result of it. So while it's true that Roger Kerr doesn't understand what the GDP actually (the measure of all the money spent in a country), it's also true that it won't necessarily rise. It depends on how much they spent rescuing and housing people, and how much they spend fixing the place up afterwards.
no subject
GDP may increase, or decrease, due to Katrina. GDP came from the production that occurred in New Orleans; its destruction has caused that to be lost. If they abandon NO, GDP will drop. If they rebuild it with streets paved in gold, marbled halls, and $100k p.a. government jobs for every citizen, GDP will rise.
Of course, most likely something in between will happen. So we don't know if GDP will rise or fall as a result of it. So while it's true that Roger Kerr doesn't understand what the GDP actually (the measure of all the money spent in a country), it's also true that it won't necessarily rise. It depends on how much they spent rescuing and housing people, and how much they spend fixing the place up afterwards.