Zoho CEO underlines need to rethink GDP; urges dumping fancy economic 'experts'
While praising Argentina's economic recovery, Sridhar Vembu says it's time to completely revise traditional notion of GDP which can be inflated by massive govt spending
In remarks also directed at India, Zoho CEO Sridhar Vembu has praised Argentine president Javier Milei’s efforts to slash wasteful government expenditure that has helped him curb triple-digit annual inflation in his country.
As Argentina's economy finally emerges from recession, Vembu underlined the need to "completely revise our notion of GDP," which he said was often inflated by excessive government spending.
He tweeted that when Milei began cutting down on wasteful expenditure, traditional Keynesian economists predicted economic doom.
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GDP no criteria, says Vembu
The gross domestic product did fall initially but has begun growing again, he remarked. “He has also converted a massive budget deficit to a small surplus for the first time in a century," Vembu said
Vembu said it was time to completely revise the traditional notion of GDP, which he said could be easily inflated by massive government spending because the spending directly adds to reported GDP and to “bullshit jobs”.
‘Dump fancy experts’
“Just as companies can show revenue while piling up debt, politicians can show 'GDP growth' while pushing government finances towards insolvency," he said. "We must not grant automatic respect to economic 'experts' with fancy academic credentials," he added.
Asked if similar measures can be taken in other countries, Vembu explained that while symptoms differ, the root cause remains the same: government profligacy.
He said that in India, state governments were competing with each other to create dependency across the population.
Vembu compared excessive government spending to addiction, warning of painful "withdrawal symptoms" when over-spending ends.
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US government spending
"Can President Trump, along with Elon Musk and Vivek Ramaswamy, really slash wasteful government expenditure in the US? I hope they can do this,” he said.
“Along with Argentina, a reinvigorated America can become a positive role model for the world. We badly need fresh economic thinking around the world," he added.
