Nature ponders the question of whether there are limits to growth. The answer is of course yes. Economic growth is, by definition, the addition of value. Once we run out of ways to add value then economic growth will stop. However, in this they also refer to another paper led by Mariana Mazzucato, in which this is said. With which we also agree, at least in part:

Economics has until now measured the price of everything and the value of nothing. That needs to change now. We need to measure the value of everything – the things that truly matter. We need to revalue health and wellbeing – and its sustenance through care without financial burden – as the central measure of success in society and economy.

Of course that first sentence is wildly wrong. As we’ve already pointed out, growth is more value add, GDP is the measure of value add. The whole thing is about value. Which means we do agree with the next part, that we need to measure the value of everything. Which, in large part, we do.

For what we’re measuring when we look at monetised transactions (we agree entirely that GDP leaves out non-monetised transactions on the simple grounds that counting stuff that doesn’t have numbers attached is difficult) is the value that individuals put on those things. Their utility maximisation leads to their valuing them at this.

So, the value add that we measure is that which is truly important to the people doing the doing, the people themselves. Which is, we think, as it should be.

Of course, we’re aware that this isn’t what Mazzucato means, that we all get to make our own valuations in our own lives. Her point is that we should be valuing everything as she thinks we should. But it’s still true that economics does value everything, the things which really matter. It’s just the valuations applied aren’t those that Mazzucato thinks they should be.