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Date: 2024-04-23 Page is: DBtxt001.php L0700-PP-important-correlations

PROGRESS AND PERFORMANCE
IMPORTANT CORRELATIONS

ECONOMIC GOALS ARE WRONG
GOOD for owners of financial wealth ... BAD for everyone else

GDP UP but GENUINE PROGRESS FLAT / DECLINING
GDP - v- GPI	Since 1955 the US per capita GDP has grown and grown and grown, but GPI, an indicator of GENUINE PROGRESS has been flat, or declining. Social dissatisfaction has been aggravated by an increase in inequality of this period of time.

Productivity UP / Profits UP / Pay DOWN
Productivity -v- Pay from Robert Reich	The Post WWII period until 1979 was an era when productivity improvements were shared with workers, but since the 1980s gains from productivity have been allocated almost completely to owners with nothing for workers. WHY has this problem not been addressed in 40 years? A total failure of political and business leadership.

Correlation: Corporate Profits track GDP
GDP - v- Corporate Profits	TPB Note: My own experience as a corporate CFO 40+ years ago confirms this. When the economy was growing, it was easy to grow profits, but in the post GoGo years of the 1970s when the global economy was in recession after the oil shock it became much more difficult to grow profits ... more the challenge was to stay in business!

Correlation: Natural Capital Issues track GDP
	Atmospheric CO2 concentrations, global temperature increases, species extinction and loss of rainforest and woodland ALL track with increase of global GDP for more than 200 years! A bigger GDP has resulted in a better quality of life for the world's population, BUT there has also been a growing risk of catastrophic collapse at some point in the future because of the environmental inefficiency of industrial processes.

SOLUTION: Accountancy MUST take into account external Social and
Environmental Impacts as well as the money profit Economic Impact

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