Re: [Pen-l] Re: Reality catches up with catastrophists

["Jim Devine" <jdevine03@xxxxxxxxx>]

Sabri Oncu wrote:
>  But, think about the newly produced debt Michael
> mentioned in his example: a bet on that the San Francisco 49ers will
> win the next two Super Bowls. Is this a "good" or a "service?" I don't
> know. But it is something newly produced and sold through markets.
> What is this bet and why does it not show in the GDP?

an agreement of that sort is simply a promise. The labor used to
create it might be counted as part of GDP, as providing a service to
Michael (if that labor is paid for). When the promise is fulfilled,
all it does is transfer wealth from one person to another, so it
should not be counted. If it broken, Michael's legs are broken. The
service of arranging the transfer and/or breaking Michael's legs might
be counted as part of GDP (if these tasks are paid for).
-- 
Jim Devine / "Nobody told me there'd be days like these / Strange days
indeed -- most peculiar, mama." -- JL.
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