GDP Insanity

I've been starting to see an increasing number of articles that are pondering the question of whether this current economic crisis is the beginning of the shift in our society away from the insatiable quest for excess through consumerism. I would hope that consumerism has reached its logical conclusion but it certainly appears as though the world governments are determined to keep it on life support for as long as possible by installing economic policies that intent to get us back on the same track that created this crisis in the first place.

It really disturbs me that the main focus, of what appears to be the majority, of the world's economists is to increase GDP at any cost. I could write for hours of why this is such a flawed strategy, and others have, but my basic argument against this strategy is that GDP has become a very poor indicator of progress and increased standard of living. Raising GDP at all costs creates some interesting accounting of what is 'good' for society. The theory states that a rise in GDP correlates to an increase in our standard of living and if that is true then the Exxon Valdez spilling its contents on the Alaskan shoreline was 'better' for us as a society than if it had sold its contents for use on the open market. The funny (and by funny I mean insane) part of GDP accounting is that nothing subtracts from raising it. A riot in an inner city that destroys property and causes untold amounts of chaos results in a greater increase than funding schools and other social programs aimed at helping the impoverishedd in that area. 'Funny, isn't it'.

Changing GDP accounting would have a huge environmental impact as well. I don't think many rational people would agree that degrading air and water quality is beneficial to society or raises our standard of living in any way. Unfortunately, doing those very things results in an increase to GDP.

Crisis provides an opportunity to examine those things that simply are not working and are at the root of it all. I think we're at a point in history where accountants and economists can change the world.

Common Sense

I really enjoy reading stuff like this. To me it is common sense to take advantage of all the small and relatively simple ways to increase efficiency. Getting a 3 to 5% increase in efficiency with moveable winglets would quickly add up to a very significant fuel savings (and operating cost reduction) for the airlines.  

Along the same lines of this is the research I saw about adding 'skirts' to the trailers of transport trucks which greatly improved their fuel efficiency as well.  Compared to redesigning engines, drive-lines, and fuels, this is a very simple and effective modification that could quickly pay for itself. 

New head of the EPA

I've been reading up on Lisa P. Jackson after watching the coverage of her Senate Confirmation hearing yesterday and so far I'm quite pleased. Ms. Jackson won my support when in her opening remarks stated that “Science must be the backbone of what E.P.A. does” and I couldn't agree more with that.

As a scientist I get infuriated when the doctrine of an administration creates policy that not only disregards science and is contrary to what years of research has shown to be valid.  I am also an environmental advocate which means I'll continue pushing for environmental protection but it is very comforting to know that the science supporting my cause will have another strong voice on the public stage.  

What?

And now from the "are you f***ing kidding me" file.