Giving Compass' Take:
- Austin Clemens discusses the prevalence of GDP in economic policymaking and its shortcomings due to its inability to convey the lived experience of everyday Americans.
- What would a new way to measure economic growth look like?
- Learn about other writers' thoughts on a more equitable GDP.
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U.S. Gross Domestic Product is one of the most-cited economic statistics and is regularly regarded as shorthand for measuring the economic outcomes of the entire nation. Although it once represented cutting-edge economic analysis, U.S. GDP is completely inadequate for understanding our modern economy or the well-being of U.S. workers and their families. It cannot tell economists or policymakers anything about the informal work sector, inequality in the economy, sustainability, and myriad other issues that are essential for policymaking in the 21st century.
The problems with the GDP measure are emblematic of the work by the Washington Center for Equitable Growth to improve economic measurements. We know from research that changes in GDP have a huge impact on the tenor of economic narratives in the United States. But we also know that GDP is increasingly disconnected from the experience of most U.S. workers and their families, most of whom generally see increases in their own incomes that are well below headline GDP figures.
Read the full article about economic growth by Austin Clemen at Equitable Growth.