“ It’s simply assumed, by most sides of the political spectrum, that the growth of ‘real’ GDP is what constitutes economic progress.
We think this is a mistake. When socialists and the Left use ‘real’ GDP as a measure of progress, or even as a quantity of empirical analysis, they are implicitly buying into the very capitalist paradigm that they otherwise reject. Let us explain.”
Evergreen and worth the read.
economicsfromthetopdown.com/20…
Why We Should Abandon Real GDP As A Measure of Economic Activity – Economics from the Top Down
For all that it purports to say, Gross Domestic Product (GDP) fails to explain anything relevant about the world.Blair Fix (Economics from the Top Down)
GhostOnTheHalfShell
in reply to GhostOnTheHalfShell • • •“ According to some of the dominant interpretations of neoclassical theory, the price of a commodity reveals the utility (i.e. pleasure) that a consumer derives from it. ”
So on the price goes up, a product’s utility goes up *by definition*.
But with inflation, all prices are going up, suggesting that everything is always becoming better. @pluralistic
😂
One of the 10,000 reasons why mainstream economics is a cringey but toxic farce.