GDP is a measure of how much an economy produces. It’s a flow, like annual income.
You would want to compare GDP to an individuals income. Any individual is going to be a very small part of the economy’s income. Their net worth is what they’ve saved over the years.
The fact that our policy makers don’t know the difference between stocks and flows should scare all of us
GDP is the most widely used metric of economic progress & well-being. But it cannot be the only one.
GDP is indifferent to whether income goes to billionaires or to the poor – or if that income goes to addressing hunger, health or deprivation.
Let’s count what matters: Health. Biodiversity. Job-creation. Human rights. Equality.
Critics of using GDP as an economic metric, such as JD Vance, don't seem to understand that it's the best one we have. @allisonschrager explains why it is her favorite statistic
Opinion: The GDP report later this week is likely to show that economic growth in the US once again topped 2%. But you wouldn’t have seen this coming in measures of the popular mood.