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The book the 'Growth Delusion' has some great examples on this as well. To quote the FTs[1] review of the book. "The official protocols define the scope of GDP
by theozaurus 9mo ago
The book the 'Growth Delusion' has some great examples on this as well. To quote the FTs[1] review of the book.
"The official protocols define the scope of GDP as measuring all monetised activity between willing parties in a given period. It is a pragmatic definition, but leads to some counterintuitive results. The sale of stolen goods for cash contributes positively to GDP, for example — so theft is good for growth. A parent’s housework and childcare, however, being unpaid, are excluded — resulting, by one recent evaluation, in a $3.8 trillion underestimate of the size of the US economy."
I vaguely remember a similar one around traffic jams as well.
[1] https://www.ft.com/content/b6182440-f21e-11e7-bb7d-c3edfe974e9f https://www.ft.com/content/b6182440-f21e-11e7-bb7d-c3edfe974...
- BrenBarn 9mo agoThere is also a book called "Mismeasuring our lives" that makes some similar points about the overreliance on GDP as "the" measure of economic health.
- graemep 9mo agoThe UK is just starting official statistics that include the value of household self supply. I do not know whether there is good enough historical data to compare it with.