Go back 150 years, and what was tracked was actual production. Iron mined, boats produced etc.
GDP is a bad measure for all the reasons above, and because prices do not work the way GDP want's them too. As another poster alluded to, increase total production and cause prices to fall across the board, and the logic of the system is that GDP drops. The only reason we see GDP increasing is that there is an underlying increase in the measurement (money), and that feeds into the measurement data.
GDP is a bad measure for all the reasons above, and because prices do not work the way GDP want's them too. As another poster alluded to, increase total production and cause prices to fall across the board, and the logic of the system is that GDP drops. The only reason we see GDP increasing is that there is an underlying increase in the measurement (money), and that feeds into the measurement data.