William Blake Jr.
2006-07-26 02:35:13 UTC
At an international astromonical convention about the search for alien
life, the theme discussed was the amount of bits of information that
was to be sent through radio telescopes. A curious scientist asked,
"How many bits of information are found in the formula e=mc(squared)?"
The conclusion was that it was not the quantity, but the quality, of
information that mattered. I believe the same is true with regards to
GDP.
I mean as follows: Not all GDP is created equal. GDP grows from
gas-guzzlers and sickness; human benefit does not. GDP is reduced by
living modestly and not needing much product; human benefit does. Thus,
there is quantity of GDP and quality of GDP; and many of the things
that increase GDP decrease human benefit - while many of the things
that result in smaller GDP increase human benefit. Therefore GDP is not
a valid measure of human benefit.
I am saying this: That it's the quality, and not the quantity, of GDP
that matters. There are parts of GDP that increase human benefit, and
others that result in its ultimate degradation. Therefore it becomes
necessary to compute not only the amount of dollars exchanged, but how
those dollars exchanged actually affect human benefit - that of the
immediate participants, those who stand to be affected, as well as
those of the yet-to-come. And in understanding such things it becomes
possible to actually direct economic activity in ways that are
beneficial.
Not much increase in GDP comes from life-changing books, sermons,
experiences. And yet these things enhance human benefit to a great
degree. Much increase in GDP comes from people becoming sick and
sickening the environment. And yet these things detract from and don't
enhance human benefit. So in order to compute how any particular
portion of GDP actually affects people, it becomes necessary to see
what it does, to whom, and how.
I live modestly, work from home, and take public transportation. In
many respects my life is now better than it's ever been. The good
portions of the GDP - such as the technological innovation that made
possible from me to work from home - are maximized, while its bad parts
- such as the amount of money one spends in traffic - are minimized
through these innovations. It's the quality, and not the quantity, of
GDP that matters.
So in assaying the economic benefit that comes from GDP, it becomes
necessary to see what actually benefits and what detracts from human
benefit. And then it becomes possible to make an informed decision as
to what economic activity to support and encourage and what to stay
away from and minimize. Not all things that generate wealth generate
utility, and many that generate minimal wealth generate tremendous
utility. So in computing the wealth of nations, it becomes requisite to
see what benefit is accomplished and what negative results are
generated.
Ilya Shambat
http://ibshambat.blogspot.com
life, the theme discussed was the amount of bits of information that
was to be sent through radio telescopes. A curious scientist asked,
"How many bits of information are found in the formula e=mc(squared)?"
The conclusion was that it was not the quantity, but the quality, of
information that mattered. I believe the same is true with regards to
GDP.
I mean as follows: Not all GDP is created equal. GDP grows from
gas-guzzlers and sickness; human benefit does not. GDP is reduced by
living modestly and not needing much product; human benefit does. Thus,
there is quantity of GDP and quality of GDP; and many of the things
that increase GDP decrease human benefit - while many of the things
that result in smaller GDP increase human benefit. Therefore GDP is not
a valid measure of human benefit.
I am saying this: That it's the quality, and not the quantity, of GDP
that matters. There are parts of GDP that increase human benefit, and
others that result in its ultimate degradation. Therefore it becomes
necessary to compute not only the amount of dollars exchanged, but how
those dollars exchanged actually affect human benefit - that of the
immediate participants, those who stand to be affected, as well as
those of the yet-to-come. And in understanding such things it becomes
possible to actually direct economic activity in ways that are
beneficial.
Not much increase in GDP comes from life-changing books, sermons,
experiences. And yet these things enhance human benefit to a great
degree. Much increase in GDP comes from people becoming sick and
sickening the environment. And yet these things detract from and don't
enhance human benefit. So in order to compute how any particular
portion of GDP actually affects people, it becomes necessary to see
what it does, to whom, and how.
I live modestly, work from home, and take public transportation. In
many respects my life is now better than it's ever been. The good
portions of the GDP - such as the technological innovation that made
possible from me to work from home - are maximized, while its bad parts
- such as the amount of money one spends in traffic - are minimized
through these innovations. It's the quality, and not the quantity, of
GDP that matters.
So in assaying the economic benefit that comes from GDP, it becomes
necessary to see what actually benefits and what detracts from human
benefit. And then it becomes possible to make an informed decision as
to what economic activity to support and encourage and what to stay
away from and minimize. Not all things that generate wealth generate
utility, and many that generate minimal wealth generate tremendous
utility. So in computing the wealth of nations, it becomes requisite to
see what benefit is accomplished and what negative results are
generated.
Ilya Shambat
http://ibshambat.blogspot.com