Is GDP the right measure in the digital age

Livewire News

Is GDP the right measure in the digital age? Ever since Netscape decided to give away its browser, free has been the rule online rather than the exception. Economically, this makes for an odd situation: digital goods and services are everywhere you look, but their impact is hard to see in economic statistics. The main measure for the health of the economy is GDP growth, a concept devised in the1930's. In the industrial age, this was a reasonable assumption, but in the digital economy that picture gets a lot fuzzier, since so much of what's being produced is available free. Much of the value digitization creates for consumers never becomes part of the economy that GDP measures. That makes the gap between what's actually happening in the economy and what the statistics are measuring wider than ever before. Read More here (VIEW LINK)


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