Saturday, July 11, 2020

Can We Depend on GDP Alone For Measuring Growth

The following is an excerpt from the book Hit Refresh by Satya Nadella.

Would you prefer to have $100,000 today or be a millionaire in 1920? Many would love to be a millionaire in the previous century, but your money then could not buy lifesaving penicillin, a phone call to family on the other side of the country, or many of the benefits of innovations we take for granted today.

Government should not have the goal of increasing GDP. It should try to improve the technology, business, freedom for the people, and make people lives more comfortable. With that, if GDP increases, it is fine. If not, that should not be a problem. Government should not do anything that increases GDP but reduces anything that impacts people.

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