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Do we need GDP?

2024-04-30 This post is about economy

I was reading one blog of Luke Smith where he has rightly illustrated that the Gross Domestic Product (GDP) measure only the market transactions and nothing more.

Having a high GDP doesn’t always mean a good and healthy economy. Higher GDP growth leads to speculations and betting on future GDP growth rates, which creates bubbles. Then why do we consider GDP as a measure of economy.

We need better indexes to measure the health of the economy which measures things that actually matters to the societies (for e.g. Happiness Index).