Economic Quality Over Quantity: What's Our GPI?
His state is now using a different way to evaluate the health of its economy: Erickson says most governments use Gross Domestic Product, which only takes into account the monetary value of all goods and services. It doesn’t count the negatives.
We shouldn’t count as a benefit dirtier waters or dirtier air. We shouldn’t count as a benefit every time we deplete our non-renewable resources. These are costs. They’re the costs of an expanding economy.
Vermont will now evaluate its economy using the “Genuine Progress Indicator.” It takes environmental and social costs into consideration, as well as economic benefits. The GPI measures quality of growth, not just quantity – and Erickson says that’s what’s needed for a 21st century economy
Erickson says measuring the quality of growth, not just the quantity, is important in today’s world -- especially when the effects of climate change are considered.