alt Hacker NewsThe GDP number is an example of "all models are wrong, some are useful". You'll inevitably oversimplify at least _something_ if you try to boil down the economy to a single number.
GDP is still useful. I don't think there are examples of countries that had drops in GDP without being in deep trouble. It exploits the fact that economies [almost] never change quickly, so when you're looking at just one country, the GDP is a reasonable indicator of the overall state.
Where the GDP sucks is when people try to compare the _rates_ of GDP growth between countries.
I agree. It's a tool and it has its uses. I simply think this current decade has had a lot if "everything is a nail" approach to it. With gdp being used to hide a massive slowdown and contraction on the labor market and the rest of the "real" economy.
I think the modern indicator is how GDP growth last year would have been almost entirely flat had it not been for the massive amounts of AI spending. Something that as of now (regardless of thoughts of long term job aspects) is only constrainting the material market.
I don't fault the author for that usage because I know they are basically using the same language such policy makers use, and using it to disprove a really odd (but common) usage of GDP as this way to measure long term prosperity.