Monday , December 23 2024
Home / Mike Norman Economics / Erald Kolasi and Blair Fix – Why we should abandon GDP

Erald Kolasi and Blair Fix – Why we should abandon GDP

Summary:
Gross Domestic Product is the most popular and useless quantity in economics A new way is measuring GDP, which may set a standard for all countries.  To measure the scale of the economy, we think it is appropriate to focus on energy. Physicist Eric Chaisson argues that energy is the universal currency of science. By measuring economic scale using energy, we put economics in line with the rest of science. And if we are concerned with sustainability, there is no better starting point than to focus on energy use. After all, the profligate use of fossil fuels under a capitalist economy is the primary driver of climate change. Energy has many forms as it is flows through society. One possibility is to focus on primary energy consumption, and see how this relates to changes in social

Topics:
Mike Norman considers the following as important:

This could be interesting, too:

Lars Pålsson Syll writes Andreas Cervenka och den svenska bostadsbubblan

Mike Norman writes Trade deficit

Merijn T. Knibbe writes Christmas thoughts about counting the dead in zones of armed conflict.

Lars Pålsson Syll writes Debunking the balanced budget superstition

Gross Domestic Product is the most popular and useless quantity in economics


A new way is measuring GDP, which may set a standard for all countries. 

To measure the scale of the economy, we think it is appropriate to focus on energy. Physicist Eric Chaisson argues that energy is the universal currency of science. By measuring economic scale using energy, we put economics in line with the rest of science. And if we are concerned with sustainability, there is no better starting point than to focus on energy use. After all, the profligate use of fossil fuels under a capitalist economy is the primary driver of climate change.

Energy has many forms as it is flows through society. One possibility is to focus on primary energy consumption, and see how this relates to changes in social structure. Another possibility is to measure useful work – the consumption of end-use energy. Still another possibility is to measure the aggregate flow rate, which is a measure of all annual energy conversions in an economic system.
The Mint Magazine 

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

Leave a Reply

Your email address will not be published. Required fields are marked *