Production possibilities as such have no normative connotations. We are interested in them for the light they throw on utility-possibilities. This is why economists have wanted to include such wasteful output as war goods in their calculations of national product; presumably they serve as some kind of an index of the useful things that might be produced in better times.Or to paraphrase George Orwell, "If this boot wasn't stamping on your face, you could put it on your foot and it would keep your toes warm -- FOREVER!"
Sunday, June 14, 2015
Some Kind of an Index -- No Normative Connotations
Paul Samuelson,"Evaluation of Real National Income,"1950