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by mike_hearn 3977 days ago
GDP is not a measure of the static wealth of the citizens of a country, it's a measure of economic activity (literally adding it all up).
1 comments

OK, but if someone who made a fortune in Germany moves to Switzerland and buys a Mercedes, does that not add about $50 K to Swiss GDP? The reasons I suspect it might are (1) GDP is essentially a measure of economic activity, i.e., transactions, and (2) how all of the small tax shelters, Monaco, Lichtenstein, etc, have very high per-capita GDP.

Regarding (1), it is possible that living in a tax shelter gives residents without a fortune more opportunities to make money than living in a country like Germany or the US does, but I lean towards the possibility that per-capita GDP is simply inaccurate or flawed as measure of the economic prospects of the residents who don't have fortunes.

Also, Singapore's per-capita GDP is very high compared to the personal income of its human residents (I have read) and I figure that was because a large fraction of Singapore's businesses are owned by non-Singaporeans (which has been the case, BTW, since Singapore's founding by British trading interests).