How GDP Came to Rule the World and What to Do about It The Little Big Number (Hardback) - Common

by Dirk Philipsen

In one lifetime, GDP, or Gross Domestic Product, has ballooned from a narrow economic tool into a global article of faith. It is our universal yardstick of progress. As "The Little Big Number" demonstrates, this spells trouble. While economies and cultures measure their performance by it, GDP ignores central facts such as quality, costs, or purpose. It only measures more cars, more accidents; more lawyers, more trials; more extraction, more pollution--all count as success. Sustainability and quality of life are overlooked. Losses don't count. GDP promotes a form of stupid growth and ignores real development.
How and why did we get to this point? Dirk Philipsen uncovers a submerged history dating back to the 1600s, climaxing with the Great Depression and World War II, when the first version of GDP arrived at the forefront of politics. Transcending ideologies and national differences, GDP was subsequently transformed from a narrow metric to the purpose of economic activity. Today, increasing GDP is the highest goal of politics. In accessible and compelling prose, Philipsen shows how it affects all of us.
But the world can no longer afford GDP rule. A finite planet cannot sustain blind and indefinite expansion. If we consider future generations equal to our own, replacing the GDP regime is the ethical imperative of our times. More is not better. As Philipsen demonstrates, the history of GDP reveals unique opportunities to fashion smarter goals and measures. "The Little Big Number" explores a possible roadmap for a future that advances quality of life rather than indiscriminate growth.

Genres: Economics, Nonfiction

Unknown Binding

First published May 25, 2015

Reviews

[Eric Bottorff · Rating 1 out of 5]

Overly polemical, unoriginal, and thus boring as hell. Very disappointing.

[Kai Robertson · Rating 5 out of 5]

From sports to elections to taxes, what we measure dictates how the game is played. Nowhere does this axiom have greater consequence than in world economic affairs, in which climate change, globalization, and rapid technological innovation are calling into question our most basic assumptions regarding the path to sustainable wellbeing. Through a fascinating overview of the history of national accounting from the Depression through today, Philipsen does an excellent job illustrating how our antiquated approach to measuring economic success severely handicaps our ability to respond to modern economic crises. In so doing, he pulls back the curtain on the fundamental bedrock of macroeconomics, vividly illustrating shortcomings that result in the powerful machinery of economic policy being directed toward solving the wrong problems.

[Eric Hollister · Rating 4 out of 5]

This book should be mandatory reading for anyone going in to politics or economics. It shows how the Gross Domestic Product has morphed from a depression-era data point to an end-all, be-all measurement that essentially defines our way of life, stressing quantity over quality. Philipsen does a good job pointing out the shortcomings of such an approach and the dangers for everyone if we continue down this path. It is a great companion read to Diamond's book Collapse (Philipsen even refers to the plight of the Easter Islanders, one of Diamond's case studies). My only complaints about this book are that the first two chapters are a slog, at times it is repetitive, and the recommendations seem a bit short on detail. This book is simultaneously informative and depressing, especially given the state of our political systems at the moment.

[Sven Philipsen · Rating 5 out of 5]

Mr. Philipsen succeeded in taking on a mammoth endeavor attempting to portray the systemic flaws of a metric that is central to the current global economic landscape in a way that is both rich in history, vivid in portrayal, and clear in message. Hopefully this book will be a wake up call for generations to come that we as a society are able to dictate our own future, but we must first understand the rules and limitations under which we are operating. GDP represents one such limitation, and Dirk Philipsen lays out both it's failures and a clear path forward that is both though provoking and well grounded in history. As a college student my self, this is the kind of material that should be required reading for all of the young men and women in our colleges and universities today.

[Fabius · Rating 1 out of 5]

This doesn't explain the history or the current workings of GDP so much as it moralizes about it imagines capitalism is. It is of course perfectly true that GDP does not correlate with human welfare and is a terrible measure, but Philipsen cannot articulate why this is so. I recommend Brett Christophers instead

[Dani Ollé · Rating 2 out of 5]

This book has many interesting sections but on the whole it felt a bit too reiterative, the same (interesting indeed) ideas being paraphrased again and agakn

[Darren · Rating 3 out of 5]

There are books about almost everything nowadays – with this book the interested reader can learn a whole lot about gross domestic product (GDP) and see how it is something that is entrenched within economic and political thinking.

It will certainly be something that can polarise opinion between those in the pro-GDP camp and those who believe that it has far too much economic power or focus (the anti-GDP camp). Like all measures, it should be viewed as that – a measure – and not some magical, ultimate being that excludes everything else. Yet GDP is viewed as power – it is the output of a country – but is every development good? Is sustainability, reduced production of “polluting” products and needless consumption necessarily good or bad? Where do you balance things out?

The author seeks to suggest that the world cannot function by GDP measures alone, especially as the planet’s resources are finite and not capable of indefinite expansion. The author argues that there is scope to develop and use “smarter” goals and measures that will benefit a future that advances quality of life rather than indiscriminate growth. Will such a change occur? Who knows!

Despite the book being written in a fairly general, open style there does seem to be some areas where the author’s logic and perspective goes askew OR this reviewer’s intellectual capacity is on strike. It might be down to perception issues or something deeper. Regardless, the reader can expect an interesting canter through economic and industrial history and development and form their own opinions. Whether these opinions can amass a sufficient body of support and lead to eventual change can be open to debate. Yet even if you find yourself on the opposite side, considering a counterpoint can be a healthy exercise and there is an extensive series of notes and a bibliography so you can dig deeper into the author’s sources and debunk or support your position.

The price might push this away from being an impulse buy for some, yet it is by no means overpriced when you consider what you are getting for your money. You could easily get a week or more of reading entertainment and despite being a comprehensive read, this is no dry, academic book that may have limited appeal.

The Little Big Number: How GDP Came to Rule the World and What to Do about It, written by Dirk Philipsen and published by Princeton University Press. ISBN 9780691166520, 416 pages. YYY

http://syndicate.darreningram.com/the...

[Chris · Rating 2 out of 5]

The only saving grace of this book was the part that told the history how official GDP statistics in the United States were first compiled. Other than that:
http://fortune.com/2015/06/03/gdp-bro...

[!Tæmbuŝu]

KOBOBOOKS

[Jim Kelly · Rating 4 out of 5]

Well researched