Gross Domestic Product (GDP) has been used a long time as a measure of economic growth and assumed to describe the overall economic health of a nation.
The calculation of GDP, however, does not factor in the real costs of doing business. Issues such as social and environmental impacts are not considered.
Resource depletion and pollution remediation are not factored in.
When these other factors are considered, we have something called the Genuine Progress Indicator (GPI).
Comparing GDP and GPI is very much like comparing gross profit and net profit. Net profit tends to give a more realistic picture when looking at benefits and costs.
It has been suggested by some economists such as Philip Lawn and Herman Daly, that there is a point where unsustainable growth would be considered “uneconomic” even though on paper that increased GDP would create a sense of real economic well being.
As a Producing, Consuming and voting public, we have big decisions to make regarding the future we want to see and the leaders who have the vision to help get us there.
Don’t get grossed out! - get out and vote, the future is what you make it.
Ron Robinson. Nelson BC