But the problem is that if there’s an oil spill off the coast of Mexico or the U.S., this also contributes to GDP. If we have more crime in society and pay to deal with it, this contributes to GDP. If we have more war, it contributes to GDP. Our main indicator of economic progress doesn’t distinguish between beneficial economic activity and dysfunctional economic activity.
This is my favorite paragraph, because it is key to make people realize why GDP growth does not necessarily improve people's lives.
This is my favorite paragraph, because it is key to make people realize why GDP growth does not necessarily improve people's lives.