Measuring GDP - The Major Limitations of GDP

The Major Limitations of GDP

The GDP fails to measure or express changes in a nation's:

  • Income distribution
  • Quality of life
  • Unpaid labour
  • Intangible valuables (e.g. feeling secure)
  • Real Savings
  • Standard of Living
  • Uneven inflationary price changes (e.g. a housing bubble)
  • Transactions on the Blackmarket

Read more about this topic:  Measuring GDP

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