I was going to write a piece about Spain’s new GDP accounting, but this guy says it better than I could.
At first I thought it was a great idea, but it turns out that although Spain is going to use the boost in figures from reporting prostitution and drugs in the GDP, they aren’t actually going to legalise any of it or give sex-workers any rights or protection.
This smacks of big boys playing little boy’s magic tricks again. “Where’s the coin? Is it in my hand, or behind your ear? Surprise! There were never two coins to begin with, I just moved one coin around so quickly it dazzled you!”
Didn’t we ban these magic tricks after they created the crisis?
Spain’s miraculous economic recovery is a mirage, a collective delusion concocted in the fevered but highly imaginative minds of government ministers, economists and accountants, and then projected on to the mass consciousness as official reality.
When it comes to creative accounting, few can hold a candle to the country’s finance minister Cristobal Montoro, who this week unveiled his latest scam scheme to “grow” the economy: namely to include prostitution and illegal drugs as part of its gross domestic product. This new accounting gimmick will add 20 billion fresh new euros to the country’s GDP — equivalent to a two percent boost. It will also automatically lower the ratio of public debt to GDP as well as the budget deficit, thus making it possible for Spain to “meet” the Troika’s deficit target of 6.5 percent.
The reason why this is necessary is that, despite brutal cost cutting, tax hikes and other forms of…
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