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He's saying that growth (GDP) is an absolute measure that is only a sum without any costs. As one economist I can't recall put it "the hero of GDP is a cancer p
by kareemsabri 4y ago
He's saying that growth (GDP) is an absolute measure that is only a sum without any costs. As one economist I can't recall put it "the hero of GDP is a cancer patient going through a costly divorce". GDP measures economic activity, with no consideration of the benefit obtained from that activity.
The interview was pretty bad, I agree. It's not clear what a "steady state economy" would look like, or what measures are held steady.
- dorgo 4y agoIs cancer treatment not a benefit? And I guess some people regard a divorce (even a costly one) as a benefit, or they wouldn't do it. Economic activity is an indication for benefit for people. I see no need to make a distinction between economic activity and a benefit obtained from that activity.
- kareemsabri 4y agoThis is a reductive definition of benefit. A rise in cancer treatments is probably not a good thing, all else equal.