GDP is broken, here's how to fix it

The US Commerce Department will announce the latest gross domestic product (GDP) numbers tomorrow, and they will probably be solid. The economy seems to be growing at an annual rate of about 2 per cent, which is not bad for the 11th year of an expansion.

After the numbers come out, something else will probably happen: Pundits will once again express bafflement about the apparent disconnect between the healthy United States economy and the sour national mood. But there is really no disconnect. The fault - with apologies to Shakespeare - is in our stats, not ourselves.

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A version of this article appeared in the print edition of The Straits Times on December 19, 2019, with the headline 'GDP is broken, here's how to fix it'. Print Edition | Subscribe