In The Measure of Progress: Counting What Really Matters, Diane Coyle critiques our reliance on outdated economic statistics, particularly Gross Domestic Product (GDP), as the primary indicator of societal and economic well-being. Her central argument is that these metrics, developed in the mid-20th century to address vastly different economic challenges, are increasingly inadequate for understanding and navigating the complexities of today's digital and interconnected world.
Coyle argues how GDP, focused on measuring market transactions, fails to capture crucial aspects of modern economies. The rise of intangible assets like knowledge, data, and digital services are poorly reflected, leading to a skewed perception of productivity and innovation. Furthermore, she highlights the exclusion of vital elements such as environmental degradation and social inequalities, which she views as critical for a holistic assessment of progress. Environmental impacts would likely drive fierce debate within the economics landscape.
The Measure of Progress is at times a rather complex read and isn’t geared for casual weekend reading on your back porch. If you aren’t versed in advanced math or economic concepts, some parts of Coyle’s book might be difficult to understand. Also, the debate within economic circles about environmental impact is one that certainly is up for debate and much discussion. However, the argument that GDP is dated and stale is certainly a valid one, and Coyle is arguably correct in asserting that a new mousetrap of some sort should be created to measure economic growth.
MY RATING: 4
