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by somenameforme 39 days ago
In the past GDP/capita used to track pretty strongly with most of all desirable metrics. So then it became the goal, and it started becoming heavily detached from those metrics - Goodhart's Law in action. For instance since 1979 in the US (first date this was measured by the Fed) real median wages are up about 14% [1] while real GDP/capita is up 118%.

And those values are even more detached than the inequity there makes clear, because for about 90% of that time wages were completely flat (and even declining) while GDP/capita kept booming up up and away. So the connection between the two has become very weak while in the past it was quite strongly connected. And that's just one random example - pick most of all those desirable metrics and it's a similar story. GDP just doesn't track with them so well anymore at all.

And when you try to compare between countries GDP becomes completely farcical as the ability to produce a zillion dollars of services doesn't translate, or even have much to do with, the ability to produce a zillion dollars of things.

[1] - https://fred.stlouisfed.org/series/LES1252881600Q