Hooray for GDP!
Abstract
Should raising the growth rate of GDP per capita be a policy goal of governments in general, and of the British government in particular? Many people would say no, for the following reasons: 1) GDP is hopelessly flawed as a measure of welfare; 2) Growing GDP is pointless since most people don’t benefit; 3) Raising GDP per capita is pointless as it doesn't make people any happier; and 4) The planet is finite, so further growth of GDP (at least in rich countries) is not feasible anyway. I discuss and reject all four of these objections. I urge the LSE Growth Commission to focus its efforts on policies to increase the growth rate of GDP per capita in the medium and long run.Download Info
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Paper provided by London School of Economics and Political Science in its series Open Access publications from London School of Economics and Political Science with number CEPOP30.Length:
Date of creation: Aug 2012
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Handle: RePEc:ner:lselon:http://eprints.lse.ac.uk/47498/
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Related research
Keywords:Other versions of this item:
- Nicholas Oulton, 2012. "Hooray for GDP!," CentrePiece - The Magazine for Economic Performance 383, Centre for Economic Performance, LSE.
- NEP-ALL-2012-12-10 (All new papers)
- NEP-MAC-2012-12-10 (Macroeconomics)
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