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Satellite Data Strongly Suggests That China, Russia and Other Authoritarian Countries Are Fudging Their GDP Reports (washingtonpost.com)
Christopher Ingraham, writing for The Washington Post: China, Russia and other authoritarian countries inflate their official GDP figures by anywhere from 15 to 30 percent in a given year, according to a new analysis of a quarter-century of satellite data. The working paper, by Luis R. Martinez of the University of Chicago, also found that authoritarian regimes are especially likely to artificially boost their gross domestic product numbers in the years before elections, and that the differences in GDP reporting between authoritarian and non-authoritarian countries can't be explained by structural factors, such as urbanization, composition of the economy or access to electricity. Martinez's findings are derived from a novel data source: satellite imagery that tracks changes in the level of nighttime lighting within and between countries over time.
If I invented a cheap machine that did all your housework and fixed your car for free, GDP would fall. Despite the fact that everybody's lives would be permanently improved.
Say a person saves his money and lends it to people in another country. He's creating wealth for himself. The other country is getting further into debt. Maybe the money is spent frivolously or invested in a soon-to-collapse bubble. Or it's spent on productive investments. Either way, the effect on GDP is the same. And it goes to the borrowing country, not the one accumulating assets (unless the borrower makes successful investments).
As individuals, trying to maximize our own GDP would mean spending every dollar we get and avoiding investments that could reduce how much we need to spend to live our lives. That's the opposite of our best interests.
Authoritarian regimes lie more than democracies.