Well, when you study economics or read the financial pages in the newspaper or look at charts trying to tell you which countries are richer than others, there is always the GDP – with the additional problem of data being compared that was collected in different countries.
I don’t think Mr Kennedy criticized the GDP for not measuring unmeasurable things, but he criticized the importance attributed to it. Even for economic output, it’s a very flawed and incomplete measure. If there is a hurricane and we need to repair a lot of broken glass, it increases the GDP. If someone makes a great invention that makes cars cheaper, it lowers the GDP (unless more cars would be sold, but then people wouldn’t buy something else with the same money).
I don’t really like RFK’s bit. Of course the GDP doesn’t measure those things – it’s not supposed to. My car doesn’t make me coffee either.
The only thing one could say is that GDP isn’t the be-all and end-all. But who would say it is?
Well, when you study economics or read the financial pages in the newspaper or look at charts trying to tell you which countries are richer than others, there is always the GDP – with the additional problem of data being compared that was collected in different countries.
I don’t think Mr Kennedy criticized the GDP for not measuring unmeasurable things, but he criticized the importance attributed to it. Even for economic output, it’s a very flawed and incomplete measure. If there is a hurricane and we need to repair a lot of broken glass, it increases the GDP. If someone makes a great invention that makes cars cheaper, it lowers the GDP (unless more cars would be sold, but then people wouldn’t buy something else with the same money).
OK, so like i said, it’s not the be-all and end-all, but it does give a general indicator as to the overall direction.