Re: [OPE-L] GDP and the "whole economy"

From: glevy@PRATT.EDU
Date: Sat Oct 13 2007 - 11:52:09 EDT


> the "whole economy" is
> straightforwardly equated with GDP, taken to represent total economic
> activity, which is simply mistaken.

Hi Jurriaan:

I agree with you about this problem, but probably for different reasons
than you have stated.

There are, of course, a lot of problems with GDP measurement but (at
least) two have increasing importance in the present conjuncture:

1.  for advanced capitalist economies, activity in the "underground
economy" (where workers receive unreported income) isn't counted.

2.  for the Global 'South' (so called), informal (petty commodity) sector
activity isn't counted as part of GDP.

The above, though, is somewhat simplified since the types of activity
associated with the "underground economy" are often found in the Global
South and informal sector activities are found in some regions and cities
in advanced capitalist nations (including where I am writing this post
now).

In solidarity, Jerry


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