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The use of GDP weights also gives higher importance to countries less exposed to food insecurity, as consumers in countries with higher GDP tend to be richer, spend a lower proportion of their income on food, and benefit from an economic environment characterized by lower and less volatile consumer price inflation.
Fareed, echoing other critics, attacks the economics profession for the use of GDP in assessing national economic performance.
There's been a growing chorus of people that argue against the use of GDP, but the fact our top-line employment figures fail to capture an accurate picture as well is surely a sign that we need a broad overhaul of how success or failure is captured in statistics.
Europeans seem less bothered about global dominance although they are sure to gloat about the fact that the weakening dollar means that the euro area could overtake America as the world's biggest economy this year.There are several other reasons Americans can quibble over the use of GDP per head, especially with reference to Japan.
More recently the consensus over the use of GDP per capita as a measure of a country level of success has started to fade (Stiglitz et al. [2010]).
Section 2 discusses the issue of controlling for human capital quality in studies of the labor market integration of immigrants and justifies the use of GDP per capita as an indicator of human capital quality.
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Philipsen is by no means alone is his criticism of the nature and uses of GDP.
He's used the latest OECD statistics on the performance of successful European nations, using indices of GDP, employment, education and health.
As Johnson wrote, with the money supply statistics all over the place, "the use of money GDP created further confusion and was ineffective in controlling either real growth or inflation".
In some sense, Brady's MAP Act is akin to Sen. Corker's CAP Act, but the use of "potential GDP" makes the reform more sustainable because economic fluctuations don't enable big deviations in the amount of allowable spending.
We've used percentage of GDP so you can see it in real terms each year.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com