Namaste Economics

In addition to integrating the latest developments in science, psychology, business and media, business must face that we also have a system that is not serving us well. The Genuine Progress Indicator (GPI) which modifies GDP (QPQ Economics) by accounting for economic costs of business that are externalized, i.e. assumed by society, AND for economic value created that is not captured in GDP. Costs such as pollution, crime, corruption, environmental destruction, long commutes and societal decay are included in this measure. Activities such as child-rearing, elder-care, community and civic activities and volunteering are also assigned value. The result is that GDP is overstated by about $7 trillion dollars a year. Specifically, sole focus upon GDP creates dire inefficiency and social decay: Waste. Waste is at an all-time high. Of the $9 trillion spent in the U.S. annually, more than half is wasted, i.e. being spent to take care of the problems of the other half. Waste includes: auto waste $1 trillion (accidents, congestion, poor design and fuel efficiency, ill health, pollution), healthcare $850 billion (nonessential & fraudulent testing, inflated insurance, pollution, diet, obesity, heart disease, cancer, substance abuse), crime $800 billion (selling of drugs, punishment of criminals, lawsuits), nuclear $500 billion (Superfund cleanup), tax $400 billion (unecessarily complex and uniforcable tax code, legal, accounting, audit, etc.) and energy $200 billion/yr (in not applying same efficiency standards as Japan). Data from the book, Natural Capitalism by Paul Hawken, Armory Lovins and Hunter Lovins. Income disparity. Between 1979 and 1995, there was no increase in real income for 80% of working Americans. During this period income rose 10%, but 97% of that rise went to the top 20%. The average American is making less money, yet working 100-200 more hours per year. Not only is the average American making less and working more, but he also has greater expenses as an increasing portion of his income is spent to remedy the excesses of our day- commuting, the breakdown of the family and crime. Much more: http://www.namasteeconomics.com/

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