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Date: 2017-12-16 Page is: DBtxt001.php L0700-MT-ECONOMIC-ANALYSIS


ECONOMICS
A very important field of study ... but largely outmoded and increasingly wrong for the modern world

ECONOMICS IS FAILING TO DRIVE EFFECTIVE POLICY
Economists identify trends ... but do little to influence policy options
A big part of the problem is that the metrics of economic performance are wrong.

GDP ... A DYSFUNCTIONAL METRIC
Economic Metrics ... If the GDP is Up, Why is America Down?
This Monthly Atlantic Magazine essay written in 1995 by Clifford Cobb, Ted Halstead, and Jonathan Rowe explains how the GDP metric measures the wrong things
Open file 0452
Economic Metrics ... more about GDP
A most dysfunctional metric
Open L0700-MT-GDP

Economics ... Dysfunctional Metrics
Harpers ... READINGS — From the June 2008 issue ... Our Phony Economy
Open file 10909 Open PDF

THE UK ECONOMY AND GDP
GDP/UK-SNA-illegalactivitiesarticlefinalf_tcm77-365319
'http://www.truevaluemetrics.org/DBpdfs/Metrics/GDP/UK-SNA-illegalactivitiesarticlefinalf_tcm77-365319.pdf'
Open PDF ... GDP/UK-SNA-illegalactivitiesarticlefinalf_tcm77-365319
GDP/UK-SNA-dcp171766_365274
'http://www.truevaluemetrics.org/DBpdfs/Metrics/GDP/UK-SNA-dcp171766_365274.pdf'
'http://www.ons.gov.uk/ons/dcp171766_365274.pdf'
Open PDF ... GDP/UK-SNA-dcp171766_365274 Open external link
UK National Accounts
Impact of ESA95 Changes on Current Price GDP Estimates
'http://www.ons.gov.uk/ons/dcp171766_365274.pdf'
Open external link

Estimates of World GDP, One Million B.C. – Present J. Bradford De Long ... Department of Economics, U.C. Berkeley
Massive change in the last 800 years ... and especially in the last 200
'http://truevaluemetrics.org/DBpdfs/Economics/GDP-Bradford-De-Long-Estimates-1998-Paper.pdf'
Open PDF ... GDP-Bradford-De-Long-Estimates-1998-Paper
Our-Phony-Economy-HarpersMagazine-2008-06-0082042
OUR PHONY ECONOMY By Jonathan Rowe, from testimony delivered March 12 before the Senate Committee on Commerce, Science, and Transportation, Subcommittee on Interstate Commerce. Rowe is codirector of West Marin Commons,a community-organizing group, in California.
'http://truevaluemetrics.org/DBpdfs/Economics/GDP/Our-Phony-Economy-HarpersMagazine-2008-06-0082042.pdf'
Open PDF ... Our-Phony-Economy-HarpersMagazine-2008-06-0082042
Kitov-and-Kitov-on-GDP

Per-capita-GDP-for-13-countries-1870-2010.png Real GDP per capita since 1870 / Ivan Kitov, Institute for the Geospheres’ Dynamics, RAS / Oleg Kitov, University of Oxford
.... The most important [finding] is that all slopes (except that for Australia after 1950) of the regression lines obtained for the annual increments of real GDP per capita are small and statistically insignificant, i.e. one cannot reject the null hypothesis of a zero slope and thus constant increment. Hence the growth in real GDP per capita is a linear one since 1870 with a break in slope between 1940 and 1950.
'http://truevaluemetrics.org/DBpdfs/Metrics/GDP/Kitov-and-Kitov-on-GDP.pdf'
Open PDF ... Kitov-and-Kitov-on-GDP.pdf
GDP-NSF-GOV-RandD-Recognized-as-Investment-in-US
Expenditures for research and development are now capitalized—incorporated as investment—in the U.S. gross domestic product (GDP) and other national income and product accounts (NIPAs) produced and published by the Bureau of Economic Analysis (BEA).
'http://truevaluemetrics.org/DBpdfs/Metrics/GDP/GDP-NSF-GOV-RandD-Recognized-as-Investment-in-US.pdf'
Open PDF ... GDP-NSF-GOV-RandD-Recognized-as-Investment-in-US

GPI ... Genuine Progress Indicator
Way better than GDP ... but not widely used

Genuine Progress Indicator ... Wikipedia
https://en.wikipedia.org/wiki/Genuine_progress_indicator
Open external link
Metrics ... The Genuine Progress Indicator (GPI)
The Genuine Progress Indicator - A Principled Approach to Economics ... The Pembina Institute ...
Open file 2968
The Genuine Progress Indicator 2006, A Tool for Sustainable Development
33 page report by Dr. John Talberth, Clifford Cobb, and Noah Slattery
The Genuine Progress Indicator - A Principled Approach to Economics ... The Pembina Institute ...
'http://www.truevaluemetrics.org/DBpdfs/Metrics/GPI/GPI-2006.pdf'
Redefining Progress created the Genuine Progress Indicator (GPI) in 1995 as an alternative to the gross domestic product (GDP).
http://rprogress.org/sustainability_indicators/genuine_progress_indicator.htm
Open file 12754 Open PDF ... GPI-2006.pdf Open external link
GPI-economics
'http://truevaluemetrics.org/DBpdfs/Metrics/GPI/gpi_economics.pdf'
Open PDF ... GPI-economics
Alberta-GPI-Accounts-Municipal-Hazardous-Waste-2002
'http://www.truevaluemetrics.org/DBpdfs/Waste/Alberta-GPI-Accounts-Municipal-Hazardous-Waste-2002.pdf'
Open PDF ... Alberta-GPI-Accounts-Municipal-Hazardous-Waste-2002
Book review ... M. Anielski ... 2007 ... The-economics-of-happiness-Building-genuine-wealth
'http://www.truevaluemetrics.org/DBpdfs/Ideas/MarkAnielski/The-economics-of-happiness-Building-genuine-wealth.pdf'
Open PDF ... The-economics-of-happiness-Building-genuine-wealth

WHAT ABOUT QUALITY OF LIFE
LESS ABOUT FINANCIAL WEALTH AND MORE ABOUT RELATIONSHIPS AND HAPPINESS
INEQUALITY
A GROWING ECONOMIC ISSUES SINCE THE 1970s ... COMPLETELY IGNORED BY POLICY MAKERS!

Inequality in the US
For the period from 1980 to 2015, the bottom 50% of the US population has shared less and less of the total GDP while the top 50% has been increasing its share.


IPS-Executive-Excess-2015-Money-To-Burn
A 32 page report of the Institute for Policy Studies (IPS)
Key Findings
Insulated from the real costs of the climate degradation they help create, fossil fuel executives are enjoying stratospheric pay.
Beating the S&P 500 average: CEOs of the 30 largest U.S. publicly held oil, gas, and coal companies averaged $14.7 million in total 2014 compensation, over 9 percent more than the $13.5 million S&P 500 CEO average. The top executives at ExxonMobil and ConocoPhillips each earned more than twice the S&P 500 average.
Five years, $6 billion: The management teams of America’s top 30 fossil fuel giants — the CEO, CFO, and next three highest-paid officers of each company — have together taken home nearly $6 billion over the past five years.
'http://truevaluemetrics.org/DBpdfs/Initiatives/IPS/IPS-Executive-Excess-2015-Money-To-Burn.pdf'
Open PDF ... IPS-Executive-Excess-2015-Money-To-Burn


720 960

623 359

The state of US inequality - 2012
The following graphic is from YES Magazine which adapted it from Hedrick Smith's book 'Who Stole the American Dream?'


Issue
GDP
Basic observation
Gross Domestic Product is a commonly used macro-economic indicator that measures the size of an economy
Prevailing response
It is a useful measure, but not very powerful for the analysis of complex relationships in the economy and the complex interactions that make up both the local situation and the world situation.
A better response
In addition to macro economic measures, there needs to be a lot of management metrics so that the how and why can be answered. GDP is just one measure or hundreds that are possible, and most more specifically useful for analysis.




The text being discussed is available at



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