Michael Spence: The “Digital Revolution” of Wellbeing: "Exponential improvements in the power and utility of digital products can also be achieved at minimal cost. Today’s smartphones are more powerful than the supercomputers of the mid-1980s.... It is certainly possible that a 10,000-fold increase in computing power at negligible additional cost over the past 20 years has yielded minimal consumer benefits; but it is highly unlikely.... None of these gains is captured in national income accounts. That is not to suggest that we should scrap or revise GDP; but we do need to recognize its limitations. The problem with GDP is not that it is a poor measure of material wellbeing (setting aside distributional issues), but that it is incomplete. It does not include the increase in the scope of goods and services delivered at negative incremental cost, nor the non-material side of individual wellbeing or social progress more generally...


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