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by kkaatii
449 days ago
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One danger is that, from a macroeconomics view, GDP growth can be attained without any regard for natural unemployment rates. When technology, controlled by capital, drives up markup on wages by displacing human labor and killing competition, then natural unemployment will rise, but the economy can still "thrive," from a statistical perspective. But it is individual persons being ignored by statistics. Indeed a grim future. |
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Your entire argument is why I reject GDP as a reliable measure of economic health (that is to say, I agree with you 100%). It can be a component of it, sure, but as the standalone metric it's relied upon as-is, it's awful. Doesn't capture inflation, doesn't capture real productivity growth, doesn't capture employment rates or labor compensation or income distribution. Heck, GDP is literally an ideal expression of Goodhart's Law: we have built entire systems designed to game a single number that was proposed as a metric of economic health, which no longer makes it a good metric of economic health!
If someone's sole defense is "GDP Up = Good", I do not take their argument seriously - because it isn't.