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p0pularopinionlast Friday at 7:23 AM3 repliesview on HN

I try to see it positive. With the AI bubble, I finally habe a tangible example to point to when I say that GDP growth is a bad indicator for economic success


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bojanlast Friday at 8:29 AM

You could have used the example of Ireland before. They score extremely well on GDP, and yet the quality of life of an average Irish person is on par with the rest of the Western Europe, with the costs of housing pressuring everything else.

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theozauruslast Friday at 7:43 AM

The book the 'Growth Delusion' has some great examples on this as well. To quote the FTs[1] review of the book.

"The official protocols define the scope of GDP as measuring all monetised activity between willing parties in a given period. It is a pragmatic definition, but leads to some counterintuitive results. The sale of stolen goods for cash contributes positively to GDP, for example — so theft is good for growth. A parent’s housework and childcare, however, being unpaid, are excluded — resulting, by one recent evaluation, in a $3.8 trillion underestimate of the size of the US economy."

I vaguely remember a similar one around traffic jams as well.

[1] https://www.ft.com/content/b6182440-f21e-11e7-bb7d-c3edfe974...

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p-e-wlast Friday at 7:29 AM

Unless you can demonstrate that there is in fact an AI bubble, that is simply begging the question.

Notice how the term “housing bubble” is used much less frequently today than 10 years ago? That’s because that so-called bubble has been ballooning in size for three decades now, and almost nobody still believes that it will “burst” in any meaningful sense. The Dotcom bubble was in many ways an outlier.

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