Today’s national income and GDP accounting formats are compiled in keeping with this anticlassical reaction depicting the FIRE [Finance, Insurance, and Real Estate] sector and its allied rent-seeking sectors as an addition to national income, not a subtrahend. Interest, rents, and monopoly prices all are counted as earnings—as if all income is earned as intrinsic parts of industrial capitalism, not predatory extraction as overhead property and financial claims.
When the socialist states privatized what had been public—which was nearly everything—and sold them at fire sale prices to the neocolonial capitalists of the imperial core, that would have been included in the GPD as well. What did that get them but a new class of local oligarchs? Just bonkers.
If you compare the GDP of suddenly collapsed, suddenly capitalist states—that were being actively pillaged by the Global North—to their GDP 30 years later, of course line go up. But that’s a very different comparison to their situations pre-collapse.
Again, fantasy.
Who calculated the GPD of a command-driven, non-capitalist state, and how did they do it? It’s incomparable using such a metric: apples & oranges.
And regardless, GDP is a garbage metric. All sorts of unproductive income is included, things that are not part of the real economy.
Finance Capitalism versus Industrial Capitalism: The Rentier Resurgence and Takeover
When the socialist states privatized what had been public—which was nearly everything—and sold them at fire sale prices to the neocolonial capitalists of the imperial core, that would have been included in the GPD as well. What did that get them but a new class of local oligarchs? Just bonkers.
If you compare the GDP of suddenly collapsed, suddenly capitalist states—that were being actively pillaged by the Global North—to their GDP 30 years later, of course line go up. But that’s a very different comparison to their situations pre-collapse.
Is any metric that’s unfavorable immediately garbage? Life expectancy? Number of political prisoners? HDI?