In one lifetime, GDP, or Gross Domestic Product, has ballooned from a narrow economic tool into a global article of faith. It is our universal yardstick of progress. As The Little Big Number demonstrates, this spells trouble. While economies and cultures measure their performance by it, GDP ignores central facts such as quality, costs, or purpose. It only measures output: more cars, more accidents; more lawyers, more trials; more extraction, more pollution--all count as success. Sustainability and quality of life are overlooked. Losses don't count. GDP promotes a form of stupid growth and ignores real development. How and why did we get to this point? Dirk Philipsen uncovers a submerged history dating back to the 1600s, climaxing with the Great Depression and World War II, when the first version of GDP arrived at the forefront of politics. Transcending ideologies and national differences, GDP was subsequently transformed from a narrow metric to the purpose of economic activity. Today, increasing GDP is the highest goal of politics. In accessible and compelling prose, Philipsen shows how it affects all of us. But the world can no longer afford GDP rule. A finite planet cannot sustain blind and indefinite expansion. If we consider future generations equal to our own, replacing the GDP regime is the ethical imperative of our times. More is not better. As Philipsen demonstrates, the history of GDP reveals unique opportunities to fashion smarter goals and measures. The Little Big Number explores a possible roadmap for a future that advances quality of life rather than indiscriminate growth.
Acknowledgments vii Introduction: We Become What We Measure 1 Casting a Spell 9 Exploring a Path 13 1. More, Better, Faster: The Beginnings 19 Productivity, Growth, and Success 20 Goals and Measures 27 Values and Measures 32 2. The Origins of Bling: The Spirit of Economic Growth 40 The World of Growth: Refining the Measure 52 Business Accounting Goes National 57 3. The Crucible of Crisis: The Great Depression and the Need for Economic Indicators 65 4. Born from Disaster: The Making of a Key Measure 83 The Challenge 84 The Players 89 The Method 93 The Findings 99 The Big Conundrum: Translating Findings into Action 102 5. Forged in War 107 6. Global Domination: The Age of GDP 117 For Richer or Poorer 117 A Stunted Priesthood 121 Stopgap Consensus 123 Going Global 128 New Rules 130 GDP Junkies 133 Shackled in Fool's Gold 139 7. Today's ABC of GDP 143 It's an Emperor, but Does It Have Clothes? 152 Why It Matters 157 8. More Is Not Enough 160 The Little Big Number: Our Report Card for Success 174 Emerging Dissent 178 9. "The People of Plenty Are a People of Waste" 184 Breaking the Spell 204 10. From Alchemy to Reason: What If? A Thought Experiment 208 Mental Cobwebs 219 One More Time: Simon Kuznets 230 Clearing a Path 236 11. Looking Forward 243 A Daring Vision 250 A Moment of Possibility 265 Appendix A. The Measure as Guide 271 Notes 277 Bibliography 351 Index 389
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