Two economists were walking down the street. They come across some dog shit on their way. The first economist turns to the second and says “I’ll pay you $100 to eat that dog shit.” The second economist agrees and eats the dog shit and the first economist pays him.
Some time later they come across another dog shit on the way. This time the second economist says to the first “I’ll pay you $100 to eat that dog shit.” The first economist agrees and eats the dog shit and the second economist pays him.
After walking a while the first economist says to the second, “The first time I paid you to eat dog shit and the second time you paid me back the same amount to eat dog shit, so we basically ate shit for nothing.”
“Not necessarily,” replied the second economist, “because we raised the GDP by $200.”
Two economists were walking down the street. They come across some dog shit on their way. The first economist turns to the second and says “I’ll pay you $100 to eat that dog shit.” The second economist agrees and eats the dog shit and the first economist pays him.
Some time later they come across another dog shit on the way. This time the second economist says to the first “I’ll pay you $100 to eat that dog shit.” The first economist agrees and eats the dog shit and the second economist pays him.
After walking a while the first economist says to the second, “The first time I paid you to eat dog shit and the second time you paid me back the same amount to eat dog shit, so we basically ate shit for nothing.”
“Not necessarily,” replied the second economist, “because we raised the GDP by $200.”