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World

GDP has lost its usefulness as a measure of productivity

22 November 2024

12:44 AM

22 November 2024

12:44 AM

Paul Samuelson, the famous American economist and author of bestselling textbook Economics, gave the now quaintly old-fashioned example of the pitfalls in GDP accounting by pointing out that if a man married his maid, GDP would fall. The example was dropped after the third edition. A more relevant example today would be if a middle aged person stops working full-time to look after an elderly relative at home.

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