Tag - Subjective value

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Monday, August 4 2014

Citizen profit

Neo-classical economics and Gross Domestic Products (GDP) focus on trade values instead of the actual value to the citizen.

This systemically underestimate the value of production and scew the political focus towards what generates profits instead of what generates value to citizens and society. The consequence is Fool's Growth is where the models are claiming "growth" in GDP while the actual output value to citizens drop. This especially occur in the public sector and when something reduce or prevent competition in the private sector.

The first phase of the Digital Economy is to a large degree characterized by Fools Growth where a few cartels and monopolies accumulated power through digital infrastructure to control market processes for their short-term profits at the expense of overall growth in Citizen Profit and society progress.

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