bsfinance's  Instablog

I believe that GDP pretends to represent all goods and services purchased for consumption over a given time period.  Due to the fact that it is impossible for goods to be compared without a standard of measurement (money), seems that there is a glaring mistake in this construction.

So it occurs to me that whether or not there is a money stock of $10,000 or a money stock of $100,000 is irrelevant to determining if consumers are receiving the goods they desire.  The goods are important, the amount of money is not.

Because of this if GDP numbers are increasing due to an increase in the money supply (which is the only way) this in no way says that the general well-being of the population is being increased.