The GDP is a flawed but magical indicator

Economists have long argued that the gross domestic product has many flaws as a measure of well-being and policy success. Yet there’s a good reason it’s still being used: There’s a certain magic to it, despite its science being somewhat iffy. On Monday, the National Bureau of Economic Research published a paper by Harvard economist Martin Feldstein detailing an argument he has been making for years — that GDP calculations underestimate actual growth and productivity. This optimistic argument is ...

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