FT Article on GDP

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FT Article on GDP

Postby sanha926 » Wed Jan 28, 2009 8:38 pm

There's an interesting article in January 28th's FT questioning the effectiveness of GDP measures:

http://www.ft.com/cms/s/0/638d2ba8-ecab ... fd2ac.html

In short, it explores some of the criticisms of GDP, including its failure to take into account non-monetary activities crucial to society (housework, etc) and to formulate 'moral judgements' on certain activities (e.g. the clean up of a nuclear accident contributes to GDP in the same way as the production of solar power).

One of the big hurdles, the article argues, in developing alternative measures is that they often involve 'subjective' elements (environmental degradation, happiness) that are impossible to quantify. Disappointingly, the article fails to explore this further in relation to the hedonistic assumptions that go into 'real' GDP measurements.
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