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Fundacja Dobre Państwo
Fundacja Dobre Państwo

Posted on • Originally published at dobrepanstwo.org

GDP and Benford's Principle: The Limits of Statistics in the Age of AI

This article provides an in-depth analysis of the evolution of GDP as a key economic indicator, which in the age of digitalization faces unprecedented measurement barriers. The author cites Andreas Georgiou and the case of Greece to illustrate how statistics is becoming a tool of political struggle. The central consideration is Benford's principle—a mathematical principle used to detect anomalies in data sets, which takes on new meaning in the age of algorithms. The text explores the issue of the "production frontier" in the context of free online services and artificial intelligence, which generate enormous consumer surplus invisible in traditional reports. The text concludes with a review of Beyond GDP initiatives, which seek new measures of well-being that incorporate human capital and quality of life in a dynamically changing world.

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