economics
Wellbeing > GDP as Metric of National Progress
The Sydney Morning Herald has kicked off an interesting ongoing feature looking at replacing gross domestic product as our default and singular metric for national and social progress. It has even commissioned an external consultancy, Lateral Economics, to develop an alternative metric, which they call the Wellbeing index.
Now, there are many ways to render such an index, and I don’t necessarily subscribe to the SMH’s method, but… I wholeheartedly support the notion that GDP is a terrible metric to reflect how our society is benefiting us as individuals. Of course, quantifying things is useful, and GPD is a nice well-defined metric. But as easy as it is to latch on to, it’s just not measuring the stuff that matters. And that’s wellbeing (whatever that is).
I touched on this in my earlier posts about the Occupy Wall Street movement.
The problem, I believe, also runs deeper than just GDP being a convenient quantification of national progress. It’s also tied to the Hayekian brand of free market liberalism that places too much stock in that economist’s Swiss army knife: utility.