article thumbnail

GDP Is a Wildly Flawed Measure for the Digital Age

Harvard Business Review

As the market, including customers, employees, and investors, shifts the mix of what is done and what is consumed, this most important and commonly used economic indicator, along with Generally Accepted Accounting Principles (GAAP), tells a concerning story.

GDP 8
article thumbnail

Why Leaders Are Still So Hesitant to Invest in New Business Models

Harvard Business Review

Finally, Generally Accepted Accounting Principles (GAAP) used to manage businesses and report to investors often ignore intangible assets or miscategorize them as expenses.