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viandante | 14 years ago

The equation is Y=C+I+G.

In the first case he has 175 of investments (I) and 25 of consume (C).

In the second case he has 200 of investments.

If some of the downvoters can please explain in those terms where I am wrong, it would be nice. Please, show me where the +25 come from in the 1st case.

discuss

yummyfajitas|14 years ago

The GDP being measured is that of the pair, not the man.

Before marriage: 175 I + 50 of consume (the man consumes 25 in the form of a clean home, his maid consumes 25 to buy shoes) = 225.

After marriage: 175I + 25 of consume (the 25 consumed by the wife to buy shoes) = 200.

By the way, your question is good, and I really wish HN wouldn't reflexively downvote stuff they don't agree with.

viandante|14 years ago

Let's say the man invests all his money in a socks business. In the first case his socks business will demand 25k less. The maid will demand 25k more. I still see effect 0. I think the problem is people are not considering savings in the equation...