Monday, April 27, 2009

Amazing Piece By Design Legend Tim Brown

From FastCompany.com, titled "Creating a Post-Crisis Economy: Moving Beyond Consumption

"Whether it is reputations created through brands, relationships created through services, ideas created through knowledge, or access created through networks, many more forms of value are now created in our modern information society. And yet, our economy does not measure those in any meaningful way."

1 comment:

Louis said...

Great article but it is not a new idea to start measuring economic progress differently. Many have pointed out that GNP lumps in good economic activity with bad and is a very gross way of measuring output and is fundamentally flawed. It is relatively easy to measure though.

One example of GDP failure is that it measures economic activity such as repairing a city after a hurricane. There is surely economic activity in this case. But it only measures consumption.

This is not really good growth since we're just getting the city back to pre-hurricane function (with some miscellaneous upgrades). Other examples on a smaller scale but in aggregate are probably larger are replacing losses due to theft and vandalism. Again, this results in economic activity but isn't something that improves quality of life.

There is an idea of measuring GNH (Gross National Happiness) rather than GNP. See here: GNH