GDP Includes People Getting Paid to Do Absolutely Nothing — Why Paul Krugman’s Love of GDP Is Wrong, Part Five
It’s the perfect way to round out a week of posts documenting the flaws in GDP as a measure of the health of the economy.
The news report below opens: “Workers at a Missouri company are telling their story, after the government paid them to do nothing.”
You’ve probably heard about this before. The story broke a month ago. The company was supposed to process a giant influx of ObamaCare applications — but the expected flood never came. So the office was filled with employees who got paid to sleep and played games. The story today is that nothing has changed. In fact, they’re still hiring! And they pay overtime!
These people are contributing absolutely nothing to the economy. All they do is drain taxpayer money.
But their services are included in GDP.
If this company were being paid directly by consumers, they would go out of business, because consumers don’t pay money for nothing. But the government does.
This is the kind of stuff Paul Krugman wants more of. Won’t someone please give him another Nobel Prize?