Beyond GDP
Business Innovation Economics
Rising GDP is not itself a measure of progress. It misleads because (a)
GDP considers only prices and (b) GDP includes everything we buy.
But Sum:Q accounts for the perceived quality of what we buy.
And when qualities representing personal or communal burdens are
subtracted from Sum:Q the net number, net Sum:Q will trend
differently than GDP. It can stagnate or fall even as GDP rises,
yet upwardly respond to contextual improvement in quality of life
Recent attempts to measure progress through Wellbeing or Life
Satisfaction are based on ever more complex assemblies of indicators.
Although this approach has the political advantage of recognizing every
voice, it is hindered by systemic invariance imposed by a well known
paradox.
Not only can net Sum:Q resolve Easterlin’s Paradox, as explored HERE,
but it can also steer us towards improved quality in life better than any
other economic measure.
It should therefore be considered for inclusion in National Accounting.
A presentation on measuring Sum:Q (from which net Sum:Q is an extension), is available HERE
