> Productivity measures, as GDP per hour worked, are highly skewed by things that we don’t think of as “productivity”.
The real problem is using a single tool and expecting it to fit all uses. GDP as a metric is simply overused and like that law I'm sure some other HNer will help me out -- a measure ceases to be a good measure when it becomes a goal. Measuring the Irish economy is easy it's just GDP isn't really that useful when considering Ireland, there are plenty of other measures you can use to compare and contrast Ireland with other countries to guage how wealthy or productive it is.
Always remember though that the GDP per capita of Alabama and Bavaria are approximately the same. Yet you would be insane to think Alambama is richer than Bavaria -- there are simply limits to GDP, like if you want to increase the GDP of your own country just start throwing rocks through windows. You're not adding value, just economic activity.
The real problem is using a single tool and expecting it to fit all uses. GDP as a metric is simply overused and like that law I'm sure some other HNer will help me out -- a measure ceases to be a good measure when it becomes a goal. Measuring the Irish economy is easy it's just GDP isn't really that useful when considering Ireland, there are plenty of other measures you can use to compare and contrast Ireland with other countries to guage how wealthy or productive it is.
Always remember though that the GDP per capita of Alabama and Bavaria are approximately the same. Yet you would be insane to think Alambama is richer than Bavaria -- there are simply limits to GDP, like if you want to increase the GDP of your own country just start throwing rocks through windows. You're not adding value, just economic activity.