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I agree that technology isn't progressing "faster and faster," but GDP doesn't measure technological progress. That is absurd. It doesn't even measure economic
by nwah1 7y ago
I agree that technology isn't progressing "faster and faster," but GDP doesn't measure technological progress. That is absurd. It doesn't even measure economic growth very well, and even if it did that wouldn't mean technological progress would track it. Technological progress can happen even during a recession, and often has.
GDP measures the value of monetized final goods in an economy. Linux and Wikipedia have thus reduced the GDP, because they displaced a huge chunk of existing markets that used to be monetized.
GDP is useful for monetary policy conducted at central banks, primarily.