Dirk Philipsen argues for replacement of GDP as growth measure

Writing for Nesta’s The Long + Short, KIE Senior Fellow Dirk Philipsen makes the case that policy makers rely far too much on economic growth metrics that don’t make sense.

Restricted to the measure of market transactions, GDP fails to account for anything outside the market – from air and water to poor people and future generations. Social inequality is no more a line item in GDP than, say, quality of goods, purpose of work, or opportunities for our children. In the face of mounting crises – all directly connected to growth – this represents an odd disconnect.

Philipsen has a forthcoming book on the topic, The Little Big Number: How GDP Came to Rule the World, and What To Do About It (Princeton University Press, May 2015).