Sunday, December 1, 2013

What GDP Doesn’t Count

GDP isn’t perfect. It never was.

Unfortunately, it’s getting worse, but for good reasons. Take a look at this video:

Very little of what is described in this video would count in GDP. And yet it’s all valuable … and wouldn’t have been produced at all a few years ago.

The upshot of this is that it’s very likely that our announced growth rates for real GDP underestimate true growth.

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