Finance & Fury Podcast

Welcome to Finance and Fury, the Say What Wednesday edition. This week the question comes from Todd. “Hi Louis, I just saw Steve Forbes talking about how Gross Output (GO) is going to replace Gross Domestic Product (GDP) as a measure of how well the economy is going? I was wondering if you agree with Steve on GO? I had heard in the past that GDP was not perfect, but had been used because it was the best option available. Are there problems with GO that will also cause problems when trying to use this measurement to judge the health of an economy? Love to hear your thoughts?" Thanks for the question Todd – is an important question – So in this episode – we will look at if the replacement of GDP with GO is a step in the right direction – to be upfront - its replacement isn’t a perfect solution as an economic measurements – but there is nothing that is perfect when talking about economics –as Economist Thomas Sowell says - “There are no solutions, there are only trade-offs; and you try to get the best trade-off