When measuring the economy, numbers are no longer good enough

Many of the yardsticks we use to assess economic performance today are outdated relics of the past, which is why GDP is a useless barometer for Britain

Our world has changed, but the way we measure it hasn’t (Getty)

A quick Google search indicates that the origin of the phrase “what gets measured gets done” is unclear. Nonetheless, there’s plenty of evidence suggesting that there’s truth in it. It’s why we’re obsessed with setting measurable professional goals for ourselves, why corporations issue public targets and growth forecasts, and it’s one of the central reasons why gender pay gap reporting legislation was introduced in the UK back in 2017, forcing every company employing at least 250 people to divulge the difference in average male salary and average female salary. Statistics create accountability and – ideally – help us build a realistic roadmap for progress success.

Especially in the world of politics, measurable metrics – GDP growth and unemployment, for example – have through the ages become important campaigning tools and scorecards both for those striving for power and for those seeking to cement it. Look no further than Donald Trump’s repeated claims of presiding over the “best economy in history”.

Even brushing aside the question of accuracy or arguments you might make about his predecessor’s role in fuelling this momentum, there’s a much more fundamental reason why the 45th president of the United States’ claims should be treated with a pinch (truckload?) of salt. Many of the yardsticks we use to assess economic performance today are outdated relics of the past that paint an unrealistic picture of the present. Our world has changed, but the way we measure it hasn’t. That’s leading to a false understanding of what we’re really up against.