http://www.youtube.com/watch?v=jNXoaIRL8CI GDP, the most popular way economists attempt to quantify economic activity, is a recent invention and one that won’t stand the challenge presented by measuring output when services are dominant as they are in the UK. The first attempt…
Category: Growth
GDP is more than imperfect; it’s wrong for economies where services dominate
An article by David Pilling in last weekend’s FT Magazine reported on expert views that gross domestic product (GDP), the most popular way of measuring output, was misleading. “GDP is a made-up entity,” Pilling quoted economist Diane Coyle as saying.…
More growth or more value-creation? Conventional economics has no answer
A feature in the Financial Times (FT) on 30 June asked whether it was any longer possible for the US economy to increase productivity and, consequently, long-term economic growth per capita. “For the past 120 years, …output per head of…