Tag Archives: well-being

What are the reasons why GDP may understate or overstate economic well-being?

My answer on Quora: There is a distinction between welfare and output in economics. Gross Domestic Product (GDP) is a measure of how much an economy produces in a given period of time. This can typically be done by looking at aggregate expenditures, income, or value-add throughout the production process. It does not measure welfare or well-being, and by definition, is […]