Maybe this was your point, but this is built in to one of the definitions of GDP, isn’t it? Money supply times velocity of money?

I’m no economist though I’m sure there are folks on here who are. But this seems like an unfortunate fact that’s built into our system- that as laypeople we tend to assume that ‘economic growth’ means an increase in the material aspects of our life. Which in itself is a debatable goal, but our GDP perspective means even this is questionable.

For example, take a family of five living out in a relatively rural area. In scenario one, both parents work good paying remote tech jobs and meals, childcare, maintenance of land and housing, etc. are all outsourced. This scenario contrubutes a lot according to our economic definitions of GDP. And provides many opportunities for government to tax and companies to earn a share of these money flows.

Then take scenario 2, you take the same family but they’re living off of the grid as much as possible, raising or growing nearly all their own food, parents are providing whatever education there is, etc. In this scenario, the measurable economic activity is close to zero- even if the material situation could be quite similar. Not to mention quality of life might be rated far higher by many.

What rating an economy by the flow of its money does do is, and I’m not sure if this is at all intentional, is it does paint a picture of what money flows are potentially capturable either by government taxation or by companies trying to grab some percentage as revenue. It’s a lot harder to get a share of money that isn’t there and/or not moving around.

Perhaps my take on economics is off base but, for me, seeing this made me realize just how far off our system is from what it could and should be.