THESE METRICS DOMINATE THE POLICY DIALOG
MULTIPLE ASPECTS OF FINANCIAL PERFORMANCE
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GDP GROWTH
THIS IS A NONSENSE METRIC THAT WAS
CALLED OUT MORE THAN 50 YEARS AGO
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CORPORATE PROFITS
IMPORTANT FOR BUSINESS AND INVESTORS
BUT ONLY PART OF A COMPLETE PICTURE
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STOCK PRICES
THESE HAVE LITTLE TO DO WITH BROADER
SOCIO-ENVIRO-ECONOMIC PERFORMANCE
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1. Left to right ... GDP growth is talked about every day on the news, but it is a metric that emerged in haste during the Great Depression of the 1930s. Prominent economics and politicians have called for its retirement going back to the 1960s, but it is still used many decades later.
2. Corporate profits are an important measure, but they should not be the dominant metric. Corporate performance should also include impacts on society and the environment. This is not easy, but it is vital ... perhaps a matter of life and death for humankind.
3. The growth of stock market valuation has all sorts of unintended consequences ... notably social inequality and the degradation of the environment and natural systems.
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