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Page added on May 1, 2014
Is GDP still the best measure of prosperity?
Today was when the White House announced the estimated GDP for the first quarter of the year. While GDP (Gross Domestic Product) is still the fundamental measure for economic growth here and around the world, many question whether it’s an adequate measure of well-being and prosperity, especially since it doesn’t take into account the health of people and the environment. The PBS Newshour explored this topic in Monday night’s broadcast. My home state, Maryland, was profiled as the first state to adopt a new metric, the Genuine Progress Indicator (GPI), made up of 26 different factors, nine of them environmental. Our Earth Matters curriculum takes a close look at Maryland’s GPI in a case study in our Sustainable Economics unit, and includes classroom activities for evaluating our economic values. Check it out.
6 Comments on "Is GDP still the best measure of prosperity?"
Northwest Resident on Thu, 1st May 2014 10:02 am
The GDP is a highly manipulated indicator these days, and has been for some time. It is basically meaningless due to all the falsifying and number-fudging going into it.
Here’s a good read on just what the recently announced GDP is composed of (note: economic contraction is the reality):
“In their first estimate of the US GDP for the first quarter of 2014, the Bureau of Economic Analysis (BEA) reported that the economy was growing at an anemic 0.11% annualized rate. When compared to prior quarters, the new measurement is down over 2.5% from the 2.64% growth rate reported for the 4th quarter of 2013, and it is now more than 4% lower than the 4.19% reported for the 3rd quarter of 2013 — indicating that the deceleration in the growth rate first noticed last quarter has both continued and sharply intensified.
Commercial activity was especially hard hit: exports led the collapse, and commercial investments and inventories also weakening significantly. Fixed investments in both equipment and residential construction contracted sharply. Government spending also contracted, primarily in Federal defense spending and state and local governmental infrastructure investment.”
Even at first glance this is not a good report. Although the headline number itself says “stagnation,” in the context of earlier reports it shows an economy in dynamic transition from lackluster growth towards outright contraction. The overall headline number is down 2.5% from the prior quarter and down 4% from the next earlier quarter. These are significant changes, with the prior quarter’s trend extended and the downward slope intensifying.
consumerindexes dot com/2014-04-30_commentary.html
Makati1 on Thu, 1st May 2014 10:47 am
GDP is a joke and has been for a long time. Real growth stopped in the 70s. Debt took over and the dollar value all but disappeared as a result. There is nothing but lies i the financial sector all over the world.
ghung on Thu, 1st May 2014 11:42 am
Gross Dumbasstic Propaganda
PrestonSturges on Thu, 1st May 2014 1:08 pm
As people realize perpetual growth is a mirage, they will be more focused on personal stability and security. i could be happy on very little if I weren’t always worried about losing it. At least that’s what I tell myself.
Plantagenet on Thu, 1st May 2014 1:35 pm
GDP is an objective number based on real data. Apologists for Obama would like to shift to a fuzzy number based more on subjective criteria because the objective GDP data shows Obama’s economic policy is a failure.
Northwest Resident on Thu, 1st May 2014 1:54 pm
Plantagenet — You don’t read financial news and articles very often, if at all, do you? Because if you did, you wouldn’t be claiming that “GDP is an objective number based on ‘real’ data”. These days, it is anything BUT based on “real” data.
Why is it that every post on this site by you is an accusation of some sort or another against Obama? Your posts are cut-and-pastes from any hardcore right wing website on the net — and just as devoid of fact and objective analysis.