As a mathematician and systems analyst I am pained by the way that our institutions are getting away with baffling us with GDP and inflation as if they measured the real economy, the life standard of real people and the quality of life on earth.
The problem with inflation is that it always measured short-term only.
The problem with GDP is that it is a national average. Extreme wealth and extreme poverty or indebtedness are ‘averaged out’.
The problem in the UK is the institutionalisation of the gathering and the distribution of the data underlying these key measures:
- the Bank of England gets statistical data from banks and financial institutions
- the Treasury gets ‘derived measures’ from think tanks and research institutes
- the UK Statistics Authority measures the price index
- the Financial Services Authority practices its supervision based on combinations of this data and statistics
- the UK Debt Management Office has institutionalised Government borrowing that ought to be replaced gradually by ‘public credit‘. In 2002 this was the first of our ‘Early Day Motions‘ addressing this fundamental cause of economic ills.
For the ‘cash crumble’ that has taken place during enormous ‘credit growth’ should at long last complement the ‘credit crunch’ that artificially cripples true growth and genuine development.
But since changing institutionalisation remains beyond my capability of change, I shall focus on 3D Metrics as my way of establishing new measures for science, finance and economics on screen, through software.