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The biggest flaw of GDP is that governments around the world try to maximize it. And, as we see in many cases, making it bigger doesn't necessarily make it bett
by coliveira 9y ago
The biggest flaw of GDP is that governments around the world try to maximize it. And, as we see in many cases, making it bigger doesn't necessarily make it better. Take education for example: you can have free schools and free universities for everyone, bringing zero additional GDP. Or you can have for profit schools and universities that will be afforded only by a few, but with big GDP impact. Another clear example is given by the USA: nationalizing health care would be great, but it would also reduce the GDP because of destruction of the for-profit industry. In this case, however, lower GDP could bring better health outcomes for most people in the country.