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Learning not to trust the All-In podcast

(passingtime.substack.com)
349 points paulpauper | 1 comments | 06 Nov 24 17:14 UTC | HN request time: 0s | source
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the_optimist ◴[06 Nov 24 21:23 UTC] No.42069635[source]▶
Leading off the article with Yglesias shows the guy has little idea what he’s proposing to discuss. Imports can reduce GDP because the import is imported and not domestically produced. The formula identifies specifically: that which is consumed domestically but not produced domestically is not part of domestic production. There is no inconsistency here at all with revised trade policy increasing GDP. It should be totally obvious and intuitive that if the same good is consumed domestically, producing it domestically rather than importing it will increase GDP, all other externalities and second-order impacts aside.
replies(3): >>42069766 #>>42070478 #>>42070753 #
1. astrange ◴[06 Nov 24 22:25 UTC] No.42070478[source]▶
Imports don't /reduce/ GDP. They don't affect GDP because they are not produced domestically. What you're proposing is import substitution (tariffs), which is bad because

1. domestically imported goods can have imported inputs.

2. reduced competition from the external good means the internal ones will be worse.

> It should be totally obvious and intuitive that if the same good is consumed domestically, producing it domestically rather than importing it will increase GDP, all other externalities and second-order impacts aside.

There's no situation where those can be put aside, and since GDP is an artificial formula you shouldn't Goodhart it like that.