We should not continue measuring GDP the we do. The method in place is not efficient in this digital age. In some situations, it overstates or understates the nation’s economic output.
For example, the system does not account for the output of illegal industries like prostitution, drug trafficking and weapons. Yet these industries though illegal contributes in the nation’s output.
Two, GDP is taken as a measure of a nation wellbeing but it does not account for the environmental degradation that takes process during production. Also, GDP improvement does not mean the whole society improved.
There is widening gap between the rich and the poor. The increase of women in the labor market makes the GPD to be overstated since the services they used to offer are not overconsumed. On the other side, the quality of goods and services that the citizens enjoy today like smartphone features are not accounted for.
The GDP should include other non-market aspects like the quality of life of the citizens and the value of goods and services citizens are able to access. This information should be categorized according to gender, age, region, and other special interest’s factors.
