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Thread on the Democratic Domestic Product DDP as an alternative to GDP
In this speech to @oecd_naec, Michael Higgins @PresidentIRL waves Goodbye 2 GDP
and calls for a new different growth narrative
Higgins identifies the inherent growth maxime as a planetary emergency. https://twitter.com/oecd_naec/status/1313416882473623552
In this speech to @oecd_naec, Michael Higgins @PresidentIRL waves Goodbye 2 GDP
and calls for a new different growth narrativeHiggins identifies the inherent growth maxime as a planetary emergency. https://twitter.com/oecd_naec/status/1313416882473623552
He urges us (citizens&economists) to realign the growth narrative with sustainability and social cohesion. In "Moving away from GDP growth" he states what we all know:
"[GDO growth] is an overly narrow, near-obsessive preoccupation with ensuring that the determinants of
"[GDO growth] is an overly narrow, near-obsessive preoccupation with ensuring that the determinants of
economic growth – consumption, investment, government expenditure and the balance of trade – are all calibrated so that economic growth is maximised at whatever cost to social cohesion and without any due regard to inequality or adverse ecological impacts.
The consequences of such assumptions being accepted uncritically are now with us and well known."
Indeed ever since the inception of GDP there were wide-ranging critiques of a measure initially conceived to measure war-time production output (tanks, riffles, tents...)
Indeed ever since the inception of GDP there were wide-ranging critiques of a measure initially conceived to measure war-time production output (tanks, riffles, tents...)
as an indicator of well-being of members of an economy. Too often growth of this misdirected measure has become an end in itself of our economic activity and misused as a justification for many economic policies.
However, many alternative measures try to include hard-to-measure
However, many alternative measures try to include hard-to-measure
aspects such as happiness ...
Under the restriction to operate on the identical data, my colleagues @alex_adamou @bermanjoe @ole_b_peters derive a measure called Democratic Domestic Product or DDP from #ErgodicityEconomics which captures individual experience over time correctly
Under the restriction to operate on the identical data, my colleagues @alex_adamou @bermanjoe @ole_b_peters derive a measure called Democratic Domestic Product or DDP from #ErgodicityEconomics which captures individual experience over time correctly
The DDP growth rate is a more informative measure, eg. it gives 1 vote for 1 individual instead of GDP, which allocates 1 vote for every € you own. Ergo if you own many €s, you have a bigger weight in GDP.
Check out this thread and the paper https://twitter.com/bermanjoe/status/1319259386108325888
Check out this thread and the paper https://twitter.com/bermanjoe/status/1319259386108325888
To make it clear, this goes well beyond the general growth critiques, but provides one promosing (of many) alternatives on how to improve our well-being, economic policies and ultimately our economics.
#EconTwitter
#EconTwitter
