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450 sats \ 1 reply \ @kr 15 Feb \ on: GDP is a Poor Measure of Economic Health econ
this is true, a lot of tech innovation belongs in the “doesn’t show up in GDP” category too.
smartphones have added enormous value to people’s lives but basically have had no impact on GDP in the last 15 years.
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0 sats \ 0 replies \ @Undisciplined OP 15 Feb
There are a few technical issues with capturing tech innovation:
  • Innovation is deflationary and our inflation metrics stink;
  • New products have no prior year price, so we can't account for how they impacted budgets (inflation measurement issue);
  • The products improve rapidly year-to-year and the necessary quality adjustments are highly imperfect.
In principle, technological innovation would be included in GDP, if everything were measured accurately.
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