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GDP is a poor metric. Of course it's not going anywhere. They'll be measuring GDP 1000 years from now; but perhaps we have a better metric that gets the spot li
by incomingpain 4y ago
GDP is a poor metric. Of course it's not going anywhere. They'll be measuring GDP 1000 years from now; but perhaps we have a better metric that gets the spot light instead. It's upon folks like nature to find the new metric. After this movement in 2014, there was a even worse attempt to use 'happiness' as a measurement but that sure fell on its face badly.
To me there are a few immediate problems with GDP that if addressed and measured may start showing a different picture of the world.
RAW GDP in 2021 for the USA is about 23 trillion; an increase from 21 trillion. You have to exclude unfunded debt. Which is roughly 2 trillion in 2021. Then you also have to exclude, NOT include public administration. So a 4 trillion shift. We are roughly at 15 trillion.
Then you also have to exclude inflation; which at these measurement points was roughly 7%. So we're about 14 trillion from the original 21 trillion.
So in 2021, the claim was 6% gdp growth, but true GDP was more along the lines of -30%. This is shocking, but mainly because we're looking at a fake 21 trillion. So we would have to do the same transform on the 2020 numbers.
Basically what I'm illustrating is government deficit spending, real gdp, and public administration are some significant negatives to GDP.