The GDP itself is overused in an attempt to oversimplify complex systems. Simon Kuznets, who originally formulated GDP in 1937, stated in his first report to th

The GDP itself is overused in an attempt to oversimplify complex systems. Simon Kuznets, who originally formulated GDP in 1937, stated in his first report to the US Congress in 1934, in a section titled "Uses and Abuses of National Income Measurements": The valuable capacity of the human mind to simplify a complex situation in a compact characterization becomes dangerous when not controlled in terms of definitely stated criteria. With quantitative measurements especially, the definiteness of the result suggests, often misleadingly, a precision and simplicity in the outlines of the object measured. Measurements of national income are subject to this type of illusion and resulting abuse, especially since they deal with matters that are the center of conflict of opposing social groups where the effectiveness of an argument is often contingent upon oversimplification. [...] All these qualifications upon estimates of national income as an index of productivity are just as important when income measurements are interpreted from the point of view of economic welfare. But in the latter case additional difficulties will be suggested to anyone who wants to penetrate below the surface of total figures and market values. Economic welfare cannot be adequately measured unless the personal distribution of income is known. And no income measurement undertakes to estimate the reverse side of income, that is, the intensity and unpleasantness of effort going into the earning of income. The welfare of a nation can, therefore, scarcely be inferred from a measurement of national income as defined above. This is quoted from Wikipedia, so you might as well read the rest of the section: https://en.wikipedia.org/wiki/Gross_domestic_product#Limitations_and_criticisms https://en.wikipedia.org/wiki/Gross_domestic_product#Limitat... And here's a historical overview: https://foreignpolicy.com/2011/01/03/gdp-a-brief-history/ https://foreignpolicy.com/2011/01/03/gdp-a-brief-history/