I often comment on the sad state of the GDP which has not really grown for the past 9 years.
I have suggested that a real deflation which is covered up by increasing college expenses, health costs and new housing construction (all areas where imports can not drive down costs) should be added to the GDP calculation the same way inflation is deducted from GDP.
Now I’m remembering that we have a slowly growing simple living class.
- This is occurring because the Internet brings us low cost and second hand goods. Readily available and delivered to our doors.
- We can get jobs that are part time and flexible like Uber.
- We can do odd jobs with good pay and create mini businesses like Taskrabbit.
- We have airbnb to make travel many times less expensive and income from shared space more feasible.
- Hostility to cars is growing while bicycle riding expands.
There is a steady exit from the labor force which suggests that the simple living hypothesis might be reliable.
Simple living expansion may be an important reason for our low GDP growth.