Measuring the impact of the strike on GDP growth

While the practical impact of
the public servants’ strike is
clearly evident, the impact on
the economy is less so.
For GDP growth purposes,
the statistical authorities
worldwide have long ago
given up trying to measure
the work productivity and
changes therein of public
sector workers, says FNB
chief economist Cees
Bruggemans.
They therefore merely take
into account the actual number
of civil servants employed
and being paid a salary. What
these servants may be up to
isn’t taken into account.
So whether they work or
strike, it doesn’t make the
least difference to GDP or its
growth. After all, it is all paid
for by you the taxpayer and
electorate, says Bruggemans.
But for the rest of us
who are enormously
inconvenienced by the
disrupted public services we
proactively seek alternatives,
in the process using our cars,
consuming petrol, trying to
get a service done by a private
entity.
“In all these instances
we would be engaged in
additional economic activity.
This stuff wouldn’t be
happening if it wasn’t for the
public sector strike,” says
Bruggemans.
The deduction, he says,
could be that the strike
could well be adding to GDP
growth at present rather than
deducting from it.
“Imagine government
advisers suggesting that
the public sector should
strike more, and if possible
for longer, indeed go on
permanent holiday, for
consider the extra GDP
growth the country could be
enjoying, and the extra work
that would be created!”