More Adam Bombs
“The gross revenue of all the inhabitants o a great country comprehends the whole annual produce of their land an labor,; the neat revenue, what remains free to them after deducting the expense of maintaining first, their fixed, and, secondly, their circulating capital, or what, without encroaching upon their capital, they can place in their stock reserved for immediate consumption, or to spend on their subsistence, conveniences and amusements. Their real wealth, too, is in proportion, not to their gross, but to their neat revenue.” – Adam Smith, The Wealth of Nations
Perhaps this is a better indicator of the real wealth of a society than their GDP or their GNP, or their GDP per capita. It’s essentially what’s left over after all of the physical, environmental and capital costs of producing the wealth in the first place, rather than just what is spent in the economy (which says nothing about how much people actually have to spend in the larger economy).
In the end, I think we need to get back to this empirical study of the economy, rather than on the overly fabricated models that we currently are using to inaccurately predict, influence or not influence our economy for the betterment of society. Adam Smith’s concept of the Invisible Hand is so overly hyped in comparison to what he actually was trying to say. Much more complicated and reasonable than his Libertarian and conservative “supporters”.
Think about it.