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Little by little, the realisation that GDP is an utterly useless indicator of economic welfare is creeping across the Australian commentariat.
Saul Eslake, chief economist at Bank of America Merrill Lynch, has warned that falling iron ore prices, stagnant wages growth and weak profits are dragging down national income – the main driver of Australia’s living standards – despite solid growth in real GDP, brought about by surging commodity export volumes. From The AFR:
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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
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