February 24, 2012

  • Rethinking GDP

    In general, we equate a rising GDP as good, and that growing economic activity to be something to be desired.  When we consider nations such as Japan, with shrinking populations, and ever older average age, people wring their hands and ask how to "kickstart" growth again.  

    I'm all for making life better, but is recorded economic activity something that should pursued at all costs?

    Obviously, I don't think so.  The environment does matter.  Try breathing in air in Hawaii.  It's such a treat.  

    Work life balance also matters.  Angry citizens shouldn't be a goal.  

    GDP is a number that can be manipulated, and changing the denominator through devaluation and inflation can create an illusion of progress.  Increasing the population size to grow the GDP is asking for the same resources to be shared by more people.  It shouldn't be an end unto itself.

    Tending the garden - being a steward to the earth - is a responsibility.  Some of it is executed through industriousness, but wisdom should be exercised.  Pursuing growth at all costs, especially debt financed growth - doesn't make sense.

    I love this verse:

    Isaiah 5:8 (NIV)

     8 Woe to you who add house to house 
       and join field to field 
    till no space is left 
       and you live alone in the land.

    Sometimes, reading economic news makes me sad.  Not all economic activity is productive.  I have strong reservations about living in an economy in which so much activity relates to exchanging money between individuals.  I'd rather put those minds to something else.