Our current economic situation highlights the disconnect between GDP and well-being?

The world economy is reasonably healthy, as measured by GDP. From the OECD:

This is small comfort to the poor, of course, who were predictably devastated when rich countries shut down (see If All Lives Have Equal Value, why does Bill Gates support shutting down the U.S. economy? (March 2020)).

But let’s focus on the comfortable. GDP per capita has taken only a minor hit, but maybe that just shows the limitations of using GDP per capita as a measure of well-being. After being deprived of the ability to travel, spend time with friends and relatives, play sports, go outside without wearing a mask, send children to school, etc., adults in rich countries still managed to produce, like prisoners eligible for daily work release.

Is life in the Age of Lockdown (except in Sweden, Florida, and South Dakota!) proof that GDP isn’t a good measure of well-being and overall quality of life?

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4 thoughts on “Our current economic situation highlights the disconnect between GDP and well-being?

  1. There are lots of gootube videos these days showing how China’s GDP PPP surpassed US many years ago. All of US’s growth for 15 years has been money printing instead of value.

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