What does GDP NOT measure?
So GDP is an important measure of the economic power and health of a nation. But GDP does not tell the whole story in terms of the well being of a nation. Here are a few things GDP leaves out: • Other social indicators. These include crime, illiteracy, life expectancy, infant mortality. Although these things are related to GDP, the connection is not perfect: The U.S. has a larger GDP per capita than Canada or Japan, but also has a higher rate of crime, illiteracy, and infant mortality. • Equity. A large GDP per capita does not mean that the wealth of a nation is shared equally. In some nations, the GDP is distributed for the most part among a small elite class, leaving the rest of the nation in poverty. • Environmental issues. A high rate of production may have disasterous environmental consequences. Brazil may increase its GDP by cutting down rain forests for the timber, but very few of us would say that is a good thing. • The underground economy. The GDP actually measured will fail t
Related Questions
- What is a shortcoming of GDP per capita as a measure of a countries wealth?
- What is a shortcoming of GDP per capita as a measure of a countries wealth?
- Does per-capita real GDP adequately and completely measure well-being?
- Does per-capita real GDP adequately and completely measure well-being?
- Why is GDP such a "deeply foolish" measure of well-being?
- Why is GDP such a "deeply foolish" measure of well-being?
