The Little Big Number : How GDP Came to Rule the World and What to Do About It

The story of GDP and why we need a better measurement of growth In one lifetime, GDP, or Gross Domestic Product, has ballooned from a narrow economic tool into a global article of faith. As The Little Big Number demonstrates, this spells trouble. While economies and cultures measure their performance by it, GDP only measures output. It ignores central facts such as quality, costs, or purpose. Sustainability and quality of life are overlooked. Losses don't count. The world can no longer afford GDP rule—GDP ignores real development. Dirk Philipsen demonstrates how the history of GDP reveals unique opportunities to fashion smarter goals and measures. The Little Big Number explores a possible roadmap for a future that advances quality of life rather than indiscriminate growth. Cover ......Page 1 Title ......Page 4 Copyright ......Page 5 CONTENTS ......Page 6 Acknowledgments......Page 8 Introduction: We Become What We Measure ......Page 14 Casting a Spell ......Page 22 Exploring a Path ......Page 26 1. More, Better, Faster: The Beginnings ......Page 32 Productivity, Growth, and Success ......Page 33 Goals and Measures ......Page 40 Values and Measures ......Page 45 2. The Origins of Bling: The Spirit of Economic Growth ......Page 53 The World of Growth: Refining the Measure ......Page 65 Business Accounting Goes National ......Page 70 3. The Crucible of Crisis: The Great Depression and the Need for Economic Indicators ......Page 78 4. Born from Disaster: The Making of a Key Measure ......Page 96 The Challenge ......Page 97 The Players ......Page 102 The Method ......Page 106 The Findings ......Page 112 The Big Conundrum: Translating Findings into Action ......Page 115 5. Forged in War ......Page 120 For Richer or Poorer ......Page 130 A Stunted Priesthood ......Page 134 Stopgap Consensus ......Page 136 Going Global ......Page 141 New Rules ......Page 143 GDP Junkies ......Page 146 Shackled in Fool’s Gold ......Page 152 7. Today’s ABC of GDP ......Page 156 It’s an Emperor, but Does It Have Clothes? ......Page 165 Why It Matters ......Page 170 8. More Is Not Enough ......Page 173 The Little Big Number: Our Report Card for Success ......Page 187 Emerging Dissent ......Page 191 9. “The People of Plenty Are a People of Waste” ......Page 197 Breaking the Spell ......Page 217 10. From Alchemy to Reason: What If? A Thought Experiment ......Page 221 Mental Cobwebs ......Page 232 One More Time: Simon Kuznets ......Page 243 Clearing a Path ......Page 249 11. Looking Forward ......Page 256 A Daring Vision ......Page 263 A Moment of Possibility ......Page 278 Appendix A. The Measure as Guide ......Page 284 Notes ......Page 290 Bibliography ......Page 364 Index ......Page 402 "In one lifetime, GDP, or Gross Domestic Product, has ballooned from a narrow economic tool into a global article of faith. It is our universal yardstick of progress. As The Little Big Number demonstrates, this spells trouble. While economies and cultures measure their performance by it, GDP ignores central facts such as quality, costs, or purpose. It only measures output: more cars, more accidents; more lawyers, more trials; more extraction, more pollution--all count as success. Sustainability and quality of life are overlooked. Losses don't count. GDP promotes a form of stupid growth and ignores real development. How and why did we get to this point? Dirk Philipsen uncovers a submerged history dating back to the 1600s, climaxing with the Great Depression and World War II, when the first version of GDP arrived at the forefront of politics. Transcending ideologies and national differences, GDP was subsequently transformed from a narrow metric to the purpose of economic activity. Today, increasing GDP is the highest goal of politics. In accessible and compelling prose, Philipsen shows how it affects all of us. But the world can no longer afford GDP rule. A finite planet cannot sustain blind and indefinite expansion. If we consider future generations equal to our own, replacing the GDP regime is the ethical imperative of our times. More is not better. As Philipsen demonstrates, the history of GDP reveals unique opportunities to fashion smarter goals and measures. The Little Big Number explores a possible roadmap for a future that advances quality of life rather than indiscriminate growth."-- Provided by publisher "In one lifetime, GDP, or Gross Domestic Product, has ballooned from a narrow economic tool into a global article of faith. It is our universal yardstick of progress. As The Little Big Number demonstrates, this spells trouble. While economies and cultures measure their performance by it, GDP ignores central facts such as quality, costs, or purpose. It only measures output: more cars, more accidents; more lawyers, more trials; more extraction, more pollution--all count as success. Sustainability and quality of life are overlooked. Losses don't count. GDP promotes a form of stupid growth and ignores real development. How and why did we get to this point? Dirk Philipsen uncovers a submerged history dating back to the 1600s, climaxing with the Great Depression and World War II, when the first version of GDP arrived at the forefront of politics. Transcending ideologies and national differences, GDP was subsequently transformed from a narrow metric to the purpose of economic activity. Today, increasing GDP is the highest goal of politics. In accessible and compelling prose, Philipsen shows how it affects all of us. But the world can no longer afford GDP rule. A finite planet cannot sustain blind and indefinite expansion. If we consider future generations equal to our own, replacing the GDP regime is the ethical imperative of our times. More is not better. As Philipsen demonstrates, the history of GDP reveals unique opportunities to fashion smarter goals and measures. The Little Big Number explores a possible roadmap for a future that advances quality of life rather than indiscriminate growth."--Résumé de l'éditeur Cover 1 Title 4 Copyright 5 CONTENTS 6 Acknowledgments 8 Introduction: We Become What We Measure 14 Casting a Spell 22 Exploring a Path 26 1. More, Better, Faster: The Beginnings 32 Productivity, Growth, and Success 33 Goals and Measures 40 Values and Measures 45 2. The Origins of Bling: The Spirit of Economic Growth 53 The World of Growth: Refining the Measure 65 Business Accounting Goes National 70 3. The Crucible of Crisis: The Great Depression and the Need for Economic Indicators 78 4. Born from Disaster: The Making of a Key Measure 96 The Challenge 97 The Players 102 The Method 106 The Findings 112 The Big Conundrum: Translating Findings into Action 115 5. Forged in War 120 6. Global Domination: The Age of GDP 130 For Richer or Poorer 130 A Stunted Priesthood 134 Stopgap Consensus 136 Going Global 141 New Rules 143 GDP Junkies 146 Shackled in Fool’s Gold 152 7. Today’s ABC of GDP 156 It’s an Emperor, but Does It Have Clothes? 165 Why It Matters 170 8. More Is Not Enough 173 The Little Big Number: Our Report Card for Success 187 Emerging Dissent 191 9. “The People of Plenty Are a People of Waste” 197 Breaking the Spell 217 10. From Alchemy to Reason: What If? A Thought Experiment 221 Mental Cobwebs 232 One More Time: Simon Kuznets 243 Clearing a Path 249 11. Looking Forward 256 A Daring Vision 263 A Moment of Possibility 278 Appendix A. The Measure as Guide 284 Notes 290 Bibliography 364 Index 402 A Professor Of Economic History Discusses Why He Believes The Gross Domestic Product, A Measure Of Output, Should Not Be The Sole Indicator Of Economic Performance And Outlines A Way To Develop Smarter Measurements And Goals.