Warning: The next generation of Americans is going to be an extremely unhappy bunch.

Saturday, May 11, 2013
By Paul Martin

GDP will make a generation of Americans miserable
Commentary: But we won’t switch to a better happiness measure

By Paul B. Farrell
MarketWatch.com
May 11, 2013

SAN LUIS OBISPO, Calif. (MarketWatch) — Are you happy? Is America happy? Yes? No? Maybe? The new 170-page United Nations World Happiness Report has the solution. But do nothing and it’ll just keep getting worse, as we’re headed to a point of no return.

Warning: The next generation of Americans is going to be an extremely unhappy bunch.

Why? Because economists use GDP to measure America’s happiness — and GDP is crashing. Yes, gross domestic product is a dumb, very misleading yardstick. GDP is one of the economics profession’s worst myths (the other, perpetual growth).

Economists believe that the total dollar value of all goods and services produced by 308 million people measures America’s happiness. Yes, money measures how happy we are. Economists say we’re happy campers when GDP is growing greater than 3%. But we’re unhappy campers when the annual rate is below 3%. Like now.

GDP is crashing, growth dropping to less than 1% by 2050

Yes, it’s going to get worse. America is going to be a very unhappy nation in the coming decades, fasten your seat belts. As Bond King Bill Gross put it in his recent newsletter: “Every investor will lose money.” Not just some. All losers. He blames it on The Fed’s cheap money. It’ll go on long after we dump Bernanke and his printing presses.

The Rest…HERE

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