We hear a lot about GDP (Gross Domestic Product) especially around election time. I have heard vague criticisms that it is not a good indicator so decided to try and get a better understanding.
This [url=http://en.wikipedia.org/wiki/Gross_domestic_product#Limitations_of_GDP_to_judge_the_health_of_an_economy]article on Wikipedia gives[/url] a pretty good overview for a lay-person like me and may be helpful to others.
[quote]GDP is widely used by economists to gauge the health of an economy as its variations are relatively quickly identified. However its value as an indicator for the standard of living is considered to be limited. Not only that but if the aim of economic activity is to produce ecologically sustainable increases in the overall human standard of living [b]GDP is a perverse measurement[/b]; it treats loss of ecosystem services as a benefit instead of a cost.[/quote]It seems worth incorporating this understanding into any discussions about developing a local economy within The Grove.