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Topic: Miscellaneous
Number of pages / Number of words: 2 / 483
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Although some measure is needed to aid in forming economic policy, GDP may not be the correct answer. Even as the US continues to see economic growth, we are reminded of the old adage, "Money isn't everything."


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One of the biggest problems of using GDP as an economic welfare indicator is that every expenditure is factored in as a good expenditure. A good example would be the building up of police in the country. This would bolster GDP showing growth, however the reasons for putting more police on the streets may be that crime has risen, therefore, the welfare of the people has not necessarily benefited from the expenditure...


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