I wrote:
> And then we can replace the GDP growth mania by the GPI growth mania?

That's a straw-man. I wasn't advocating that.

> I'd argue that the way we measure progress itself needs to be
> flexible. What was progressive 100 years back (increasing food
> production for e.g.) is definitely not progressive today. Likewise
> what we might consider progressive today (to put into a GPI index) may
> not be so in the future.

Following a long tradition started (at least in the US) by James Tobin
and William Nordhaus, the GPI is simply an effort to correct GDP for
what the benefits it leaves out (e.g., parents' labor taking care of
kids) and for the costs it leaves out (e.g., pollution).  It suffers
from the same problem as GDP:  it is added up using
(inflation-adjusted) prices, so that in some cases prices are attached
to items that really shouldn't be priced. But that does allow for
changing priorities (definitions of progress) over time, since things
likely have higher prices as they become more important.

> Why should we expect to be able to measure something as complex as the
> well-being of a society with a single number?

You are right: the BIG problem with the GPI is that it presumes that
all of these things can and should be added up to create a single
number. I tell my students that the main benefit of the GPI is that it
tells us the stuff that measures of activity in the goods & services
markets leave out. It points us in the direction of understanding
what's really happening in the economy without being a perfect number
itself. Use-value cannot be measured quantitatively. (That's one
reason why GDP gets such respect: what it measures is exchange-value,
which can be measured quantitatively.)

Anyway, no-one that I have heard of has ever advocating distilling all
of society's goals into a single number. It's only the "real GDP is
the best a measure of social welfare" crowd that does that. And I'd
bet that they'd moderate their opinion under a little bit of
questioning.

If Sabri makes me president of the US, I'd insist on getting as much
information as possible so that the Congress of of Councils of
Workers' Delegates could be as informed as possible when making
crucial decisions. No single number would be sufficient.
-- 
Jim Devine /  "Nobody told me there'd be days like these / Strange
days indeed -- most peculiar, mama." -- JL.
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l

Reply via email to