The American Compass Podcast The Poverty of Consumption with Philip Pilkington
Jun 20, 2025
Philip Pilkington, author of The Collapse of Global Liberalism, challenges conventional economic wisdom by investigating why many Americans feel poorer despite rising consumption. He critiques GDP as a misleading measure of prosperity, emphasizing the need for metrics that reflect human flourishing. The discussion touches on the ethical implications of profit-driven motives in essential services and critiques the rise of private equity. Pilkington also explores the decline of global liberalism and the potential return to traditional values in society.
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GDP Metrics Lose Real Meaning
- GDP and CPI metrics have become unreliable for measuring real living standards due to shifts in economic behavior.
- Consumption saturation and monetization of previously unpaid labor distort traditional economic indicators.
Monetized Social Relationships Inflate GDP
- GDP growth often reflects monetization of social relationships rather than real increases in wealth or production.
- Rising rents in housing, education, and health sectors consume spending without enhancing living standards.
Income Inequality Mirrors Asset Inflation
- Income inequality is closely linked to inflated asset prices rather than just income differences.
- Wealth concentration reflects asset valuation growth more than increased real consumption by the wealthy.
