Simon Kuznets invented the Gross National Product (GDP) in the 30’s as a way of measuring one aspect of the economy. He cautioned, “the welfare of a nation can . . . scarcely be inferred from a measure of national income.” It does not measure whether that income is being fairly distributed among the masses who work, or hoarded by the few who own. So we live at a time when productivity has exploded, profits have exploded, but wages have remained stagnant. But wage theft does not show up in the GDP. As on economist put it, “the economy is great, it’s just the people who are suffering.”
Steven Stoll has written an article for Orion Magazine called, “The Mismeasure of All Things.” It gives us a very different take on the GDP. To read the article, click here:
http://www.orionmagazine.org/index.php/articles/article/7008