From Herman Daly.
Aggregate growth is growth in scale of the economy, the size of real GDP, which is a value-based index of aggregate production and consequently of the total resource throughput required by that production.
The addition of value does not require greater resource use. Not unless we\’re going to start arguing that knowledge of how to add value, something entirely immaterial, is a resource.
Real GDP is a value-based index of aggregate quantitative change in real physical production. It is the best index we have of total resource throughput. The unit of measure of real GDP is not dollars, but rather “dollar’s worth.” A dollar’s worth of gasoline is a physical quantity, currently about one-fourth of a gallon. The annual aggregate of all such dollar’s worth amounts of all final commodities is real GDP, and even though not expressible in a simple physical unit, it remains a physical aggregate and subject to physical limits. The price level and nominal GDP might grow forever (inflation), but not real GDP, and the latter is the accepted measure of aggregate growth. Most people can grasp this, and do not conceive of real GDP as trillions of dollar bills, or as ethereal, abstract, psychic, aggregated utility.
Nope. See above. We can increase real GDP by increasing the value of what is produced. Which does not depend upon resource consumption.
Point 3 is entirely true. But it is up to him to calculate that illth is now, at the margin, greater than wealth. Tough one to argue to the Somali farmer on 50 cents a day.
Self-reported happiness increases with per capita GDP up to a level of around $20,000 per year, and then stops rising.
Easterlin Paradox. This is wrong. Sorry, but it is.
5 is correct. Long known problem and why so much attention is being paid to externalities and national capital accounting. So true but out of date.
6: We\’ve reached peak knowledge. After my generation of professors it\’s all downhill from here eh?
7: We can serve the goal of full employment by restricting automation,
Facepalm. Back to the fields you peasants!
Globalization is the engineered integration of many formerly relatively independent national economies into a single tightly bound global economy organized around absolute, not comparative, advantage.
Bollocks. How can a friggin\’ economist get comparative advantage wrong?
More elsewhere later I think….