In chapter 9 Charles Wheelan explains how we measure the
growth of our economy. He questions whether GDP is the right and most accurate measurement
we can have. He then gives other potential better types how to measure our economies.
For me, the most questionable thing is that if we don’t have a precise type of measurement,
why does it than matter so much. There are agencies such as Moody’s or S&P
that give ratings to countries based on their GDPs and other factors. Based on
those ratings, country gets their interest rates, when they borrow money. However,
if those measurements aren’t 100 % correctly talking about economies than the
ratings aren’t too. Therefore the interest rates aren’t rightly evaluating the
economy, which in the end affects me, because I have to pay more or less in my
taxes.
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