3 ms·
Most measured economic growth is like this - getting more from less.. For example, a process that allows producing 2x more electricity per unit of fuel would in
by jlawson 4y ago
Most measured economic growth is like this - getting more from less.. For example, a process that allows producing 2x more electricity per unit of fuel would increase the productivity of the generator station, and be counted as economic growth.
Economic growth also measures increased consumption of natural resources, so it's a mixed measurement admittedly.
- danny_codes 4y agoExcept that gdp has no conception of the impact of improved productivity. For example, cars are an incredibly inefficient and expensive transportation model from a capX and operating cost perspective. Switching to a public transit model would increase quality of life, but would shrink the gdp, because the operating costs for public transit are orders of magnitude less than car-oriented transit. So even though public transit would improve efficiency, the 1st order effect would be to reduce gdp.