Comment by JumpCrisscross
Comment by JumpCrisscross 2 days ago
> Because children don’t contribute to GDP
The simplest model of GDP is productivity per capital times population. And the simplest model in finance is moving cash flows around in time.
Comment by JumpCrisscross 2 days ago
> Because children don’t contribute to GDP
The simplest model of GDP is productivity per capital times population. And the simplest model in finance is moving cash flows around in time.
So who adds more to GDP:
A. A child of any age.
OR
B. A migrant worker.
My guess is B because that person can produce goods for export while consuming local goods. Children (at least for the first few years of their life or so) do not contribute to production. They only contribute towards consumption. You could argue that they motivate the parents to produce more but increasing skilled migration in the parents industry can do the same.