ACCOUNTING ASSESSMENT

This chapter has examined the war economists measure national output and the overall price “level.Having
reviewed the measurement of national output and analyzed the shortcomings of the GDP, what should we conclude about the adequacy of our measures? Do they capture the major trends? Are they adequate measures of overall social’welfare? The answer was aptly stated in a review by Arthur Okun.

It should be no surprise that national prosperity does not guarantee a happy society, any more than personal prosperity ensures a happy family. No growth of GDP can “counter the tensions arising from an unpopular and unsuccessful war, a long overdue self-confrontation with conscience on racial injustice, a volcanic eruption of sexual mores, and an unprecedented assertion of independence by the young. Still, prosperity is a precondition for success in achieving of our aspirations.