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Re: [OPE-L] GDP growth and rising poverty: let them eat cake...



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> Two persistent myths in political economy and the media are that changes
> in real GDP are a synthetic indicator of economic growth, and that
economic
> growth necessarily means more jobs and less poverty.

Hi Jurriaan:

What statistical measure is a better indicator of economic growth than GDP?

> As an ideology, the two myths have a surface plausibility, because in
> order to be able to distribute more incomes as such, the size of the total
> cake has to grow.

It's another Smithian fallacy.

Theoretically, it's also tied I think to the assumption of Say's Law.

> Poverty gap in US has widened under Bush

It might be surprising, then, from a Supply-Side economic perspective.

In solidarity, Jerry



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