The Genuine Progress Indicator for Australia

by Clive Hamilton and Hugh Saddler

It has long been recognised that GDP growth does not correlate well with changes in social welfare, i.e. national well-being. The GPI adjusts GDP by 23 factors that reflect some of the social and environmental costs of economic growth to give a better measures of changes in national prosperity. This paper explores these issues in the context of describing the methodological approach of the Australian GPI. The results show that a sharp divergence between GDP and the GPI has opened up since the 1970s.

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