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Article on problems with GDP as a leading indicator


Rabbitisrich
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http://www.nytimes.com/2009/08/10/opinion/10zencey.html?sq=g.d.p.%20r.i.p.&st=cse&adxnnl=1&scp=1&adxnnlx=1250517670-qrGjRBiFDSrujsiYCBaWvA

 

The basic problem is that gross domestic product measures activity, not benefit. If you kept your checkbook the way G.D.P. measures the national accounts, you’d record all the money deposited into your account, make entries for every check you write, and then add all the numbers together. The resulting bottom line might tell you something useful about the total cash flow of your household, but it’s not going to tell you whether you’re better off this month than last or, indeed, whether you’re solvent or going broke.

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