How The Cult Of GDP Accounting Inherently Leads To Bad Government Policies

 

In short, GDP attempts to measure the total value of finished goods and services produced in the nation in a given period—typically a year.

But does this focus on final goods paint an accurate picture of total economic activity? As any reader of the classic Leonard Read essay “I, Pencil” can attest, the bulk of economic activity lies well beneath the surface of the finished product we see on the store shelves.

 

 

 

 

 

 

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