nathan tankus wrote:
> ... From Marx's perspective, it would
> seem to me obvious that the growth that matters is growth in the net
> product per year IE gross output- depreciation costs. from this
> perspective our economy has been shrinking because we are keeping
> gross output growing by reducing stocks of wealth (ie natural
> resources) and thus reducing our ability to produce output in the
> future. in other words our planet is being liquidated. I don't think
> anyone would call a liquidation of stocks of assets income. From this
> point of view, the goal is to stop our economy from shrinking further
> and perhaps actually start growing.

that's one of the points of calcuating the GPI.

> by the way: GDP was not invented to be a measure of human welfare. it
> was invented to measure financial flows and understand the
> interrelated balance sheets of economic sectors. it's quite good at
> that. It's inventors in fact warned against using it as such.

It's slightly more accurate, I think, to say that GDP was invented to
measure the circular flow of money from spending to business income to
national income, as in a Keynesian model.
-- 
Jim Devine /  "Segui il tuo corso, e lascia dir le genti." (Go your
own way and let people talk.) -- Karl, paraphrasing Dante.
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