alt Hacker NewsCorrect me, but if two people create a SAAS that can replace a 50 people SAAS, compete on price and the competitor is forced out of the market, wouldn’t this show up as an reduction in GDP? Efficiency (GDP/time_worked) should be up though, and AFAIK it isn’t.
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HWR_14 • today at 3:04 PM
Yes, when prices of goods and services go down so will GDP. I've not seen evidence of the prices of SaaS going down in the past few years.
2 people are now producing what took 50 people previously.
What are the 48 other people doing now? Presumably some other economic activity.