The world we live in is exceedingly complex. We use indicators to simplify things. Indicators work in the same way as a map. They are meant to be a guide, a representation of reality, which help us to understand the lie of the land. The scale of the map and what it is trying to measure will determine how accurately and completely it approximates reality. Except that sometimes we get lazy. In the midst of our information overload, we are tempted to oversimplify. This is the main problem with economic indicators today. GDP is the classic example of a blinkered unsustainable approach to indicators. This podcast looks in more detail at the concept of indicators, the limitations of Gross Domestic Product (GDP) as a measure of progress as well as some of the more sustainable alternatives, like the Index for Sustainable Economic Welfare (ISEW) and the Genuine Progress Indicator (GPI).
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