David Pilling
Economy GDP or National well being. What should we pay attention to?
GDP includes pollution, crime, war, the waste in the health system. Ignores volunteer work. House work. Bad at measure progress. Stuck in traffic helps GDP. Assisting a friend does not.
Measuring growth Pre industry weather determine. Not diff of productivity. Econ for finance war. Muster army to conquer or repel.
William Petty – downs survey 1652 Ireland. Map land carve up land and pay those who financed the land. Flows of income. Later England and Wales. So they could tax. production and consumption, trade ad. Population. Labor. Ships houses and estates Doomsday.
Physiocrats. Wealth from farming. Productive class farm and production. Sterile class soldiers merchants and royalty – Econ distinct from king.
Production boundary. What should we count and not. Government services, education? GNP – kuznitez wanted to exclude illegal activity. Harmful activities and most giv spending. He lost
War spending should be a negative on growth. No just add people. Crazy expensive health care increases growth. Kenzie wanted gov spending in GDP. War effort be against growth. Gov had to be part of economy. Fiscal stimulus could t happen – would count against growth.
Any activity where individuals willingly take part should be counted. Including prostitution and drugs. Grey Econ come counted in Italy. Mafia counted Econ grows 18%. Encourage arms manufacturers cause growth. Same as cigarettes. Cancer care also part of growth.
GDP value of goods and services during a certain period. 3 methods, spendure, income and production Prod all made. Can’t double count. Bakery only value added. Flour and eggs already counted. Value of goods produced minus value of intermediate goods. GNP nations anywhere. Bush 1 switched cause included Japanese work in us. Now, gdp better for us. China production makes us look good. iPhone assembled in China brings 2% to China. 30% to US. Agg demand. All spent. Add export. Subtract imports.INd, gov, bus, export. – imports Income pay rent dividends tax.
Unpaid house worn roughly 40% of gdp Finland. Odd thing this hurt poor. Add the conceptual wealth. Poor does much of this work. Maksim g bed not change rich income. Pumped up poor
Account for banking activity. Money not from fee but spread. Rate they charge and rate they are charged. Wider the spread, the more money bank gonna make. Riskier the loan, wider the spread. Risked the loans, better we are growing.
Banks two functions store and transfer money.Allocate risk. Measuring allocation of risk double counting. Risk should be seen in growth of a company. Prices to fall towards zero. Many things zero. Pay money, pay with time to see ads, pay with data. Patent keep prices
Invention over Robert Gordon Elect, clean water, internal combustion. Plane speed stuck. Urbanization, women freedom.
Rising morbidity in white males. In us
Greed GDP – Environment destroying should not count as growth. Drain wetland for mall,loss of wetlands not account. Wealth counting. Not just income(growth). But count assets, and whether going up and going down. Sustainability. Aviod collapse, help us make better decisions.
2 ways to prove nature. Without price, we ignore. Revealed preferences – coastal property over non costal property. $75/hectare =$2.5 trillion Stated preference.
Chain letter from generation to generation to leave sum total of capital the same. Invest in environment seen as a wealth generation, invest in education and research wealth creation.
Earth Overshoot Day August. GFN ratio of footprint and what earth can regenerate, produce and absorb. 2008 1.5 planets
81% capital people. Education. Institute
Willingness to pay. Measure of value based
6 char of happiness – Income, life expectancy, trust in others. Perceived freedom to make life decisions. Generosity. Laird work. World value Work family friends, financial health personal valued.
GPI – account for negative spending. Maryland 2009. Make use of 26 indicators already captured. Found that income increase, gpi does not. Diminishing returns.
Critics says all measure all value judgements. 75% alcohol positive. Studies says 25% binge drinking, so that goes against. Time driving. Commuting seen as negative but perhaps people like?More sensitive to contortions. 2008 Mary Lang gdp went up. But real hardship in state. GPI down 3 based on decrease in capital down.
HDI Hucks index. Income longevity literacy. Top country.
Canada index. Ask Canadians. Response tax, environment, edu, health, social, security work life balance. Civic engagement
Changes GDP per captita. Add people growth goes up 2% growth and 2% pop. No growth
Median income. Who is right in middle. Measure better input from public sector Unequal genie coefficient Need stock of wealth Ndp. Depreciation. Adding to wealth or not. 81% not physical. We inventing or not?
OECD better life dashboard. Mix as you like.
Econ not real. One way of imaging our world Gdp not real cleaver way of measuring some of what we do. Growth very limited was to measure society GDP no diff positive from negative. Prison war spending. Waste all same as education. Out bloated, inefficient far too expensive health care system good for gdp (NDP account for depreciation). Pollution can be good. Can’t count volunteer or family work. Better for economy to care for other people’s kids. Arms sales as good as books.
Not account for wealth. Just a measure of income. No idea if we spending our wealth or bulking. 81% of us wealth intangible Decatur’s work force, centers of k and activity. Institutions. Rule of law. Is our current growth living off or adding to? Account for gov or not? Change relation. Investment in system or output ?