Government economic policy is currently directed, in large part, toward making sure that there are regular increases in GDP. I get that.
I'm trying to figure out what government policy might look like if it was directed toward increasing net household wealth. Just hoarding gold does little for the economy. But this is irrelevant. At issue is what it would look like, economically, to focus on increasing a nation's economic wealth (after inflation). It seems like it would be awfully difficult to increase after-inflation wealth without a fair amount of genuine value being created, no?
Could focusing on combined household wealth cause there to be more attention paid to median household wealth? And how might economic policy behave differently if increasing this was its focus?
Another reason to pay closer attention to wealth is that it doesn't suffer from the "broken window fallacy".
I'm trying to figure out what government policy might look like if it was directed toward increasing net household wealth. Just hoarding gold does little for the economy. But this is irrelevant. At issue is what it would look like, economically, to focus on increasing a nation's economic wealth (after inflation). It seems like it would be awfully difficult to increase after-inflation wealth without a fair amount of genuine value being created, no?
Could focusing on combined household wealth cause there to be more attention paid to median household wealth? And how might economic policy behave differently if increasing this was its focus?
Another reason to pay closer attention to wealth is that it doesn't suffer from the "broken window fallacy".