The Oil Drum

What I would contend is more tenuous is the link between GDP and the "real" economy. I not refering to some bootleg off-the-books exchanges, but rather just the part of the "measured" economy where something of real value is created. All lot of what transpires now, in terms of money flow, provides little net benefit yet shows up as evidence of economic vitality. If we suddenly stopped making anything new, we could continue selling each other our accumulated stuff on Ebay and keep the GDP robust for awhile.

What constitutes value in a real economic context? Something (whether it be extracted energy, raw materials, a product, a service, or information) which enhances society's ability to produce or do more of the same. Otherwise, it's like an expensive fireworks display; entertaining for awhile, but then the lights go out and all that's left is the acrid smoke and diminished ability to hear.

I agree that there's more to life than "value" as defined above, and we will need to embrace that more in a future economy since the usual fix of "more stuff" always costs energy.