by Alasdair MacLeod
Gold Money
Governments and central banks are making the mistake of believing that growth in GDP is a primary measure of economic performance. This confuses growth, measured as a total of transactions without regard to their quality, with progress, where quality of life is the driving factor.
The origin of this error is mathematical economics, which has banned human action from all policy considerations. You cannot quantify progress, while you can add up all the transactions that make up GDP. GDP only rises, or grows, when the currency value of transactions recorded increases. And that can only be the case if the quantity of currency in circulation inflates.
This article explains why this is so and describes why it is progress that should be everyone’s economic objective.