The economics of housework

Why the government wants you to dine out.

In an increasingly monetary economy, the concept of home production is set to win more attention from policy makers. Simply put, home production is work done outside of the cash market, usually to satisfy desires and needs of immediate family members and friends.

Cooking is an obvious example: the overall economic impact of buying a hamburger at a fast-food restaurant reflects its price, the payroll taxes levied on the cashier and so on, while that of a hamburger cooked at home includes only the cost of ingredients and perhaps a tiny fraction of a utility bill for the stove.

The homemade hamburger may be better to eat, but what is certain is that the two hamburgers are very different in terms of determining the national gross domestic product. In countries where stay-at-home housewives are common, that GDP difference may be significant.

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