Chuck Schumer: A New Economic KPI

First we had Elizabeth Warren introducing the Accountable Capitalism Act and now Chuck Schumer is introducing a new bill to add a new KPI to track who benefits from the GDP, especially when it is increasing in a positive manner. When the GDP goes up, who really is benefiting from it? For at least a decade, there appears to have been a decoupling of GDP from the average American’s economic welfare.

And finally, Chuck Schumer and one other Congressman are introducing a bill to adjust our economic KPI’s to track how well the GDP serves all levels of income. For quite some time now, the rise in GDP growth did not coincide with the rise in general income levels. The stock market is going gangbusters, along with the GDP, but it is suspected the average American is not seeing any of it. Just like there has been a decoupling of productivity from wages, there appears to have been a decoupling of GDP and general welfare of the average American, and Chuck Schumer wants a KPI to show how well the GDP is serving the average American. It’s about time.

As one economic writer states, it may be difficult to measure such a KPI but it will add tremendously to our understanding of how the economy is affecting EVERYBODY, not just the fortunate few.

Here are some of the articles that explain more fully some of the history and thinking behind the bill.

This one is from the economist: “For Whom the Economy Grows”

Here’s an in-depth article that includes the history of economic measures: “Senate Democrats Want the Government to Say if the GDP is Helping the Middle Class”

And finally, another opinion piece: “We’re Measuring the Economy All Wrong”