What's the Economy for, Anyway? 1/13

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Uploaded by on Mar 15, 2010

Ecological economist Dave Batker questions whether GDP is an adequate measure of society's well-being and suggests workable alternatives.

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  • @ToddBoyle One of the failures of accounting is the dangers of ignoring the economic costs. These include positive and negative externalities which are very real (investments in education and pollution in rivers). Accountants also fail to account for opportunity costs. We cannot just count the cost of college. The salary given up while attending school must also be counted.

  • I worked 20 years as a CPA. We all knew the financial statements were a lie---They don't include externalities. They only reflect the costs and benefits exchanged by the entity with its counterparties.  You notice, I did not say "Principle Parties." Because, you too, are a principle party. You have costs. You are affected. These are called "externalities" in every economic text. In vast betrayal of us all, they ignore them. Externalities are the "Banalities of Evil".

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