Blair Fix, Jonathan Nitzan & Shimshon Bichler – Real GDP

Link to an article by Blair Fix, Jonathan Nitzan & Shimshon Bichler:

“Real GDP: The Flawed Metric at the Heart of Macroeconomics”

Real-World Economics Review, Issue 88, P. 51 (July 10, 2019)


Like everything in the Real-World Economics Review, this article really is an attack on the hegemony of neoclassical (i.e., anti-classical) economics.  The main points this article makes therefore tacitly draw from classical economics, such as the distinction between use value and exchange value that was explained by Karl Marx in Das Kapital.  Of course, these authors make no mention of Marx.  They also suggest energy units as one alternative to GDP, similar to a concept promoted by R. Buckminster Fuller three or four decades ago but no such precedents are acknowledged in the article.  They also normatively accept a “growth” model.  There is a degree of self-promotion in this article, and it only briefly explains the ideological battle driving their critique.  But the narrow technical points it makes are mostly sound.

See also “The GDP Illusion: Value Added versus Value Capture”