gdp

Growth slowdown (2): GDP is a measure of a mid-20th century industrial economy

(Back to the overview post)

The invention of modern national accounting, which includes the construction of GDP estimates, is credited to Kuznets and others, who did pioneering work on measuring output in the 1930s and 1940s. Ever since it was invented, thoughtful economists have cautioned against using GDP as a measure of welfare; all the while most other economists do just that.The standard criticisms of national output are outlined in clarity by the Stiglitz-Sen-Fitoussi commission, or more poetically by Robert Kennedy:

 

I would express these specific criticisms in a common way:

GDP measures the things that seemed important in 1940.

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