There is a famous story about Milton Friedman who was visiting a road crew at a Chinese road construction site when he commented on how slow the work seemed to be going. He was told that the project was not as important as the work; this was a "make work" project. If that was true, Friedman replied, why not substitute spoons for the shovels?
The Masters of Entrails when discussing economies never seem to concentrate on work done. Government money "for jobs" seems to be an end in itself. But medical care seems to be different. It is generally accepted that health care should not consume more than 10% of the gross domestic product. But why is that? Is the work of medicine less important to the economy than that of an entertainer? A non-profit? Law? Science and technology have great respect for failed efforts, should economists? What components in the economy can we remove with impunity? Tattoo parlors? Tanning salons? Corner groceries?
The GDP is the product of an equation (GDP= Consumption + Investment + Fed Spending + Net Exports) whose factors ignore quality and success. How did some of the components of those factors suddenly come under judgment? And if subjective value is important, perhaps we should bring back the "Snookie Question."
The Masters of Entrails when discussing economies never seem to concentrate on work done. Government money "for jobs" seems to be an end in itself. But medical care seems to be different. It is generally accepted that health care should not consume more than 10% of the gross domestic product. But why is that? Is the work of medicine less important to the economy than that of an entertainer? A non-profit? Law? Science and technology have great respect for failed efforts, should economists? What components in the economy can we remove with impunity? Tattoo parlors? Tanning salons? Corner groceries?
The GDP is the product of an equation (GDP= Consumption + Investment + Fed Spending + Net Exports) whose factors ignore quality and success. How did some of the components of those factors suddenly come under judgment? And if subjective value is important, perhaps we should bring back the "Snookie Question."
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