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How is GDP a measure of wealth? It's a measure of how much money is spent back and forth and not much else. Some consider this money moving to be "progress" b
by jayfuerstenberg 13y ago
How is GDP a measure of wealth?
It's a measure of how much money is spent back and forth and not much else.
Some consider this money moving to be "progress" but it actually only highlights how many problems a society's people are willing to pay in order to solve.
The medical industry is a classic example of this. People are suffering and paying an arm and a leg for cures and treatment. GDP reflects the money aspect of this while ignoring the human aspect.
- RobinHanson 13y agoGDP is only an initial starting point for developing a measure of national welfare. Using GDP in this system might well be better than our current system, and improvements should make it even better.