Schrager Defends GDP as Best Gauge, Rejecting UN's 31-Indicator Dashboard

3 articles · Updated · The Economic Times · Aug 11

Allison Schrager argues GDP remains the most useful single economic statistic, saying no rival measure matches its scope, consistency and ability to track growth across countries and over time.
The sharpest alternative she cites — a UN-backed dashboard of 31 indicators — fails, she says, because it replaces one objective benchmark with a menu politicians can selectively use.
Schrager acknowledges GDP is imperfect and does not capture every social priority, but says that is true of any statistic and critics still have not produced a better replacement.
US debt, aging demographics and technological change will still show up in GDP, she argues, making it a key accountability tool for judging productivity, living standards and policy trade-offs.
Europe's stagnant growth and US debates over industrial policy, trade and low-skill manufacturing underscore her broader point: dismissing GDP can also mean sidestepping the costs of slower growth.