The deficiencies of Gross Domestic Product (GDP) as a measure of national health have long been recognized. The responses, however, haven’t really gotten to the nub of the problem.
Yes, GDP only measure how much stuff a nation makes and consumes; yes, how that is defined changes over time; and yes, the production and consumption of stuff can be a great good, but it can also be a great problem. GDP goes up after natural disasters because of the rebuilding, but hurricanes, tornados, droughts and earthquakes are hardly a healthy recipe for economic growth.
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