Still not understanding how this does not either double count development, or openly accede the existence of stupefying price failure in the market place. Anyone?
Research and development spending that was previously treated as an expense to business, the same as paper clips and electricity, will also now be treated as an investment with the potential to generate future income.
But also for this:
Still, as new sources of economic value emerge, it’s important to try to account for them, even if the accounting risks becoming more arbitrary as the measurement issues become more challenging. But it’s equally important to try to measure the value we’re destroying — to “net out” the environmental damage.
As for how all this affects us ‘normal folks’, if GDP continues to be the basis for policy discussions and decisions, it’s critical to think more astutely about how to calculate that number.
I hope Dr. B. and Dean Baker continue to highlight this topic, because from what I see at my local level, a lot of people still need to be educated about the implications.
Still not understanding how this does not either double count development, or openly accede the existence of stupefying price failure in the market place. Anyone?
Great article!
Particularly this, which IMVHO is way overdue:
But also for this:
As for how all this affects us ‘normal folks’, if GDP continues to be the basis for policy discussions and decisions, it’s critical to think more astutely about how to calculate that number.
I hope Dr. B. and Dean Baker continue to highlight this topic, because from what I see at my local level, a lot of people still need to be educated about the implications.