GDP a poor measure of performance

[cye]

further evidence that GDP is a poor way to measure a country's performance.

www.bbc.co.uk/news/science-environment-23931590

[cye again]

i read this piece in one of yesterday's newspapers. It provides some nice examples exposing the inadequacy of GDP as a measure of how well a country is performing.

www.theguardian.com/commentisfree/2013/nov/01/how-economic-growth-has-become-anti-life

[cye]

Here's a reasoned case (at least so it seems to me!) for viewing GDP figures with scepticism and suspicion, given that borrowing is never deducted from the GDP figures:

m.freedomworks.org/blog/lheal/the-gdp-seduction

I did a quick scan this evening of the UK GDP figures. My interest was up in the light of the recent announcements of a rapid jump in UK growth (GDP growth).

UK GDP is around the £1200bn mark.Govt borrowing is increasing from year to year by about £95bn, UK household debt is increasing by £1.5bn/month or roughly £20bn/year. So, total UK borrowing is increasing by perhaps £115bn pa. The Govt and IMF forecasts growth of 2.4% or £28bn.

Now what if we deducted the total annual household and govt borrowing figure? Well, that would convert the + growth figure into a negative figure not far off 10%.

I know it's all a bit schoolboy in its simplicity, but it does seem like we don't really have any growth at all, other than growth in spending which is funded mainly by borrowing.