3 ms·
Forgive me if I missed the objective quantitative measurement the article suggests to replace it. GDP is kind of like measuring spending in your family when yo
by jl2718 3y ago
Forgive me if I missed the objective quantitative measurement the article suggests to replace it.
GDP is kind of like measuring spending in your family when you should be measuring saving. It’s not meant to track personal well-being, but rather the strength of an economy, and for that, a better metric may be savings and investment rate.
Savings rate is a measurement of productivity normalized to consumption. Closely related is investment rate, which is savings times capital efficiency.
- sapling-ginger 3y agoIf I save 100% of my income, such that I get kicked out of my home, I can't go to work, can't buy food, and I starve to death, am I doing good financially?
- johntyree 3y agoYes? It would be a stupid way to live, but financially, I think you'd be doing "really well," conditional on your income, up until you died.