slycal (99.86)

Measurement of Economic Performance

September 17, 2009 – Comments (1) | RELATED TICKERS: GDP

A very good article.  The GDP is an indicator that we often take into account as investor. For a long term investor, it is not a good measure due to the misleading indications. 

"Gross domestic product (GDP) is the most widely used measure of economic activity.

There are international standards for its calculation, and much thought has gone into its

statistical and conceptual bases. But GDP mainly measures market production, though it has

often been treated as if it were a measure of economic well-being. Conflating the two can lead

to misleading indications about how well-off people are and entail the wrong policy

decisions."

http://www.stiglitz-sen-fitoussi.fr/en/index.htm