Redefining Prosperity: Lutnick, GDP, and the Myth of Government-Driven Growth

Suppose a man pays himself to dig a hole and fill it back in. He labors. He earns. Money changes hands. Yet, though activity occurred, has anything of economic value been created? This is the central paradox animating Secretary of Commerce Howard Lutnick's proposed reform to Gross Domestic Product (GDP). By excluding non-productive government spending f…