Gross Domestic Problem

'This book is long overdue. Finally, the political interests behind the GDP mantra have been unveiled, forcing us to rethink mainstream economic views and build a more just and sustainable world. It is indeed the most important struggle of our generation.' Kumi Naidoo, Greenpeace International Executive Director 'As the planet's ecosystems and local and national economies collapse, going beyond GDP has become a survival imperative. This is the challenge that Fioramonti has taken up in Gross Domestic Problem. Further to tracing the short history of GDP, its roots in mobilising for the war, its artificial construction of wealth erasing nature's contributions and the wealth created by women and all who work for sustenance, the author introduces us to new initiatives, like those of Bhutan, to measure real wealth as well being and happiness.' Vandana Shiva 'Going beyond the flaws of using gross domestic product which many have highlighted, this inspiring book by Fioramonti provides a much needed history of the development of GDP and an analysis of how it has been (mis)used to define progress. Further to pointing out the problem of how government policy priorities have been led astray, Fioramonti provides a thorough and up-to-date picture of the various initiatives that have emerged to demote the role of GDP. Not naive in its recognition of the challenges faced by this endeavour, Gross Domestic Problem is an excellent read for academics and activists alike.' Saamah Abdallah, New Economics Foundation 'Never before has one single measure shaped our world so profoundly. Incisively illuminating the politics behind its numbers, Fioramonti has reinforced the urgent need to reset our coded image of ourselves.' Dr Simon Zadek, award-winning author of The Civil Corporation 'Since WWII, we've been willing to sell our grandchildren's tomorrow for a bump in GDP today. Fioramonti reveals the insanity that rules economic thinking by giving us a simple, clear account of "the world's most powerful number," while also surveying the superior alternatives.' Richard Heinberg, author of The End of Growth: Adapting to Our New Economic Reality 'Gross Domestic Problem tells the amazing story of how GDP became the king of all measurements, against the warnings of its very architects. In brilliantly excavating the history of national income measurement, the Depression-era birth of GDP and its politicization in the Cold War, and the rich body of work behind today's global movement to transform national accounting systems, Fioramonti illuminates the politics of GDP like no one else has. This is a singular contribution on a vitally important subject.' Lew Daly, Senior Fellow, Demos (USA), author of Beyond GDP: New Measures for a New Economy 'GDP numbers are quoted all the time, but the power of GDP relies on the fact that hardly anyone knows what it means. As Fioramonti shows in this indispensable guide, there are at least three things wrong with gross domestic product: it's gross, it's domestic and it's a product. That is, the GDP number takes no account of the depletion of capital goods or natural resources, treats income accruing to foreign investors as a measure of national success and focuses on the means of economic activity, production, rather than the ends. Gross Domestic Problem explains why GDP is both so useful and so misleading, and gives a readable history of this most powerful and mysterious of numbers.' John Quiggin, University of Queensland 'Fioramonti shows convincingly that ever since its invention the measurement of GDP has rested on highly controversial ideological assumptions. GDP is thus an ideological weapon, not a neutral scientific measure. There is no hope of escaping the current crisis until we recognise the role that obssession with GDP has played in causing it.' Jonathan Aldred, Director of Studies in Economics, University of Cambridge