Post‑Labor Economics Series • Policy Brief • June 2025
Executive Summary
Gross Domestic Product was built for an industrial age when work, wages, and output rose together.
Automation, zero‑price digital services, and intangible capital now break that link. Relying on GDP alone blinds policymakers and executives to three critical signals:
- Invisible value – consumer surplus from free AI tools and social platforms never enters the accounts.
- Mis‑located value – intellectual property, data, and algorithms booked in low‑tax hubs inflate some nations’ GDP without raising resident incomes (Ireland 2015’s +26 % “miracle”).
- Unequal value – labor’s share of income keeps sliding; aggregate output looks healthy even as household liquidity stalls.
To manage a post‑labor economy, governments and boardrooms need an updated dashboard.
I outline a Prosperity Stack of five complementary indicators—Inclusive Income, Intangible Capital Stock, Digital Value‑Added, Carbon‑Adjusted Output, and a Well‑Being Lens—backed by the forthcoming UN SNA 2025 revisions and OECD GDP‑B pilots.
1 | GDP’s Four Structural Cracks
| Crack | Evidence |
| Zero‑price digital goods | OECD GDP‑B pilots add 0.2–0.7 pp/yr to U.S. growth once consumer surplus from free apps is counted. |
| Intangibles under‑capitalised | Microsoft’s 2024 10‑K lists $400 bn in “research & software” expensed—not recognised as investment in national accounts. |
| Distribution blindness | Ireland’s 2015 GDP jump (+26 %) from IP relocations left median income flat. |
| Externalities ignored | 25 countries grew GDP 2010‑22 while biodiversity and mental‑health indices deteriorated (UN SDG Tracker). |
These cracks distort fiscal baselines, mislead monetary policy, and erode public trust when headline “growth” fails to reach households.
2 | Case Vignettes
- Leprechaun Economics (Ireland 2015) – a vivid demonstration of GDP’s location problem; sets the stage.
- Kenya’s M‑Pesa – millions lifted from cash‑flow volatility; GDP hardly budged because transfers are fee‑free.
- EU Four‑Day Week Pilots (2024‑25) – output per hour rises; total hours fall; well‑being up, GDP flat.
- Amazon U.S. Robot Warehouses – regional GDP climbs, but local wages stagnate; distribution gap becomes concrete.
3 | The UN SNA 2025 Draft—A Turning Point
In March 2025 the UN statistical committee released the draft System of National Accounts 2025. Two proposed changes matter most:
- Capitalise data & algorithms – moving billions from “expenses” to “investment.”
- Well‑being & sustainability satellite tables – officially encouraging national dashboards for inclusive income, health, education, and environment.
This confirms that mainstream statisticians agree the 20th‑century GDP core needs augmentation.
4 | Introducing the Prosperity Stack
| Pillar | Indicator | Policy Use‑Case |
| Inclusive Income | Median disposable income growth, after transfers | Tracks household purchasing power to avert demand shortfalls. |
| Intangible Capital Stock | Data, software, algorithm value on national balance sheet | Signals whether a country is investing in the real drivers of AI‑era growth. |
| Digital Value‑Added | Output incl. zero‑price services (GDP‑B method) | Reveals hidden welfare and justifies digital‑infrastructure spending. |
| Carbon‑Adjusted Output | GDP net of CO₂ equivalence | Aligns growth targets with climate commitments. |
| Well‑Being Lens | Composite of health, education, social trust | Gives Cabinet and boards an at‑a‑glance check on societal stability. |
Illustrative Comparison (United States vs Germany, 2024)
Figure 1. Adjusting for digital consumer surplus and capitalised intangibles lifts prosperity well above measured GDP—especially in the U.S., where free software and data‑rich platforms dominate.
5 | Timeline—How We Got Here
Figure 2. National accounts evolved slowly for half a century; SNA 2025 is the first to embed data & well‑being guidance—an opening for comprehensive reform.
6 | Policy & Boardroom Playbook
Governments (EU & U.S. focus)
- Adopt Inclusive Income as a fiscal KPI.
- Publish Intangible Capital tables annually.
- Pilot Digital Value‑Added satellite accounts via OECD GDP‑B toolkit.
- Integrate Carbon‑Adjusted Output into national budgets (already mandated in Germany’s “Climate Check” law).
Corporations
- Report proprietary data assets (value and governance) in annual filings.
- Disclose staff median income vs. Intangible ROI—a proxy for inclusive wealth creation.
- Tie executive incentives to Carbon‑Adjusted Output and Well‑Being metrics in ESG frameworks.
7 | Risks of Inaction
- Fiscal fog: automation erodes wage tax base faster than models show.
- Mis‑timed monetary policy: output gaps mis‑sized when zero‑price services soar unseen.
- Social backlash: voters reject GDP‑only success narrative, fueling populism.
- Capital misallocation: firms under‑invest in data and over‑invest in visible plant because intangibles look like “costs” on the P&L.
8 | Next Steps—Building the Dashboard Together
I am convening a Prosperity Stack Working Group with European and U.S. statistical offices, central banks, and tech‑company economists.
The pilot will:
- Open‑source Python notebooks for GDP‑B and Intangible Capital estimation.
- Test Inclusive Income reporting across Germany, France, and the United States.
- Publish quarterly briefs on policy implications.
📬 Subscribe to receive the pilot methodology deck and join the conversation: thorstenmeyerai.com/newsletter
End‑Note References
- United Nations Statistics Division (2025). Draft System of National Accounts 2025.
- OECD (2024). Measuring GDP‑B: Valuing Free Digital Goods.
- Bureau of Economic Analysis (2023). Digital Economy Satellite Account: Final Update.
- Lane, P. (2016). “Leprechaun Economics.” Irish Times.
- UN Department of Economic and Social Affairs (2025). SDG Progress Report.
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