Marc Fleurbaey: Going beyond GDP: what for and how?

#ECONOMICSFOREVERYBODY Going beyond GDP: what for and how? Marc Fleurbaey GDP (Gross Domestic Product)1 growth remains a key indicator for economic policy, and international comparisons of development levels are still largely centered around relative GDP... More

#ECONOMICSFOREVERYBODY Going beyond GDP: what for and how? Marc Fleurbaey GDP (Gross Domestic Product)1 growth remains a key indicator for economic policy, and international comparisons of development levels are still largely centered around relative GDP levels adjusted for purchasing power parity. Still, this indicator is subject to permanent criticism. You may remember the irony of the situation that saw a former French president pledge to seek one additional point of growth “with his teeth” only to see the financial crisis blow his hopes away, leading him to convene a commission co-chaired by Joseph Stiglitz, Amartya Sen and Jean-Paul Fitoussi, which confirmed the criticisms of GDP and spurred renewed efforts to come up with new indicators of economic performance and social progress.2 But where do we stand today? Before answering that, let’s go back in time to understand where we come from. The economics of welfare dates back a little over a century, with the publication by economis Less