Using GDP as a benchmark of our economy is like using a score in soccer to assess the quality of gameplay: systemic depravity of reason stemming from confounding of consequence and cause.
The denomination of GDP is as relevant as the number of goals scored in a game of soccer, irrelevant as it is no indication of the quality of the game played. Economics like these systemically confounds consequence with cause, causing the depravity of reason similar to those assessing the quality of a game of soccer by the score.
Our GDP constitutes a financial system eleven times the size of production. Meaning, we bet on production more than we produce, about eleven times over, and over, and over. Each time we bet (even on the same asset), we add to GDP without adding discriminate value. Such is the second fallacy of GDP.
The third fallacy of GDP is the makeup of GDP, which is different per country. Meaning while we compare GDP with other countries as if their composition is identical, the comparative value of GDP is limited.
And then there is this:
The official American deep poverty rate (making below $11,888 per year) is now a notch under sixteen percent (15.8% to be exact) of the total population, with a quarter of all children under age-five raised in poverty. And 70% of children nation-wide now eligible for free or discounted lunch at school. (Source: National Association of Federal Education Program Administrators, March 2015).
GDP makes us look good in the showroom of the world. Under the hood, we suffer from the malfeasance of freedom that prevents all but those who ride the wave of oligarchic freedom for a prosperous ride. And thus, the supposition of the strength of our economy is in question.
Let’s be happy we live in a country where we are allowed to dissent our man-made depravity of economics and reinvent ourselves. The few with the wherewithal to challenge our oligarchs are what makes our country the powerhouse of reinvention it is.
