Skip to main content

Posts

Showing posts with the label Real Wealth

The GDP Delusion: Why the World’s Favorite Metric Fails the Future

For decades, Gross Domestic Product (GDP) has reigned supreme as the ultimate measure of national success. It is the number quoted in every headline, the metric central to political debate, and the foundation of virtually all macroeconomic policy. People tell us that a country is doing well if the GDP number increases. However, what if the GDP number itself is a mere illusion, a remnant of the industrial era that completely fails to represent genuine human advancement, societal prosperity, or ecological stability? As we rapidly move into an era defined by artificial intelligence, complex non-market interactions, and existential environmental threats, relying on this single figure is not just misleading; it’s dangerous.  "The welfare of a nation can scarcely be inferred from a measure of national income." — Simon Kuznets (Creator of GDP, 1934) Here are 12 fundamental flaws of GDP that prove it is a measure of mere turnover , not genuine value, wealth, or sustainable well-bei...