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Date: 2024-07-27 Page is: DBtxt001.php txt00022254 |
MANAGEMENT METRICS
GPI -V- GDP Genuine Progress vs GDP ![]() Original article: Burgess COMMENTARY Peter Burgess | ||
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Genuine Progress vs GDP
Written by JEREMY WILLIAMS
September 3, 2013
1 Commenton Genuine Progress vs GDP
A few years ago the New Scientist dedicated a whole issue to the idea of possibility of life without economic growth. I wouldn’t want to hail them as champions of the postgrowth perspective, but the magazine is asking the right questions, and drawing links between the environment and the economy.
This summer they ran a story on one of the alternatives to Gross Domestic Product, the more holistic Genuine Progress Indicator. Where GDP just measures raw economic activity, the GPI takes account of non-monetary profit and loss. It debits negative things like habitat loss, unemployment, or the cost of crime from the accounts, so that bad things aren’t counted alongside the good stuff.
When charted alongside GDP, it emerges that ‘genuine progress’ has plateaued. In the US, it peaked in 1978. Britain’s chart tells a rather different story, a decline and then a recovery.
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