GDP Is the Wrong Tool for Measuring What Matters

GDP Is the Wrong Tool for Measuring What Matters

Since World War II, most countries around the world have come to use gross domestic product, or GDP, as the core metric for prosperity. The GDP measures market output: the monetary value of all the goods and services produced in an economy during a given period, usually a year. Governments can fail if this number falls—and so, not surprisingly, governments strive to make it climb. But striving to grow GDP is not the same as ensuring the well-being of a society.

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