GDP 2.0

Yesterday, Alan B. Krueger, the Chairman of the Council of Economic Advisers, announced that the [..] the past GDP numbers were [..] adjusted [..] It’s a change that’s partly the result of calculations that now factor entertainment and innovation. Adding the entertainment industry to the formula, according to Kreuger, presents a more accurate picture of the economy:

“The comprehensive revision to the national accounts [..] includes [..] methodological changes designed to better reflect the evolving nature of the U.S. economy. For instance, the GDP data  released today … adopts an expanded definition of business investment that includes spending on research and development (R&D) and the creation of original works of art”.

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About damn time. Toffler famously called the old GDP “Grossly Distorted Product”. Even the recent additions might not be enough, but it is a good start.