To Save The Economy, We Have To Break Its One Sacred Rule | Co.Exist | ideas + impact

We tend to take the GDP measure for granted as though it has always existed. Most people don’t know that it was invented only recently. It has a history. During the 1930s, the economists Simon Kuznets and John Maynard Keynes set out to design an economic aggregate that would help policymakers figure out how to escape the Great Depression. Kuznets argued for a measure that would help us maximize human well-being and track the progress of human welfare. But when World War II struck, Keynes argued that we should count all money-based activities—even negative ones—so we would know what was available for the war effort.
-Jason Hickel

It’s time to move beyond growth for growth’s sake

There are two problems with economic growth as a measure of wellbeing. First, the correlation between economic growth and poverty reduction is weak. It’s a reminder that intuition and ‘common sense’ do not always correspond to evidence. Globally, the trends are clear. Since 1990, global gross domestic product (GDP) has increased 271 per cent, and yet both the number of people living on less than $5 a day, and the number of people going hungry (using the Food and Agriculture Organization of the UN’s definiti

Source: It’s time to move beyond growth for growth’s sake —…