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Genuine progress indicator (GPI) is a metric that has been suggested to replace, or supplement, gross domestic product (GDP). [1] The GPI is designed to take fuller account of the well-being of a nation, only a part of which pertains to the size of the nation's economy, by incorporating environmental and social factors which are not measured by GDP.
The Life in the UK report was first published in November 2012 and included the National Well-being Wheel of measures, which is being updated twice a year, with the May 2014 update being the latest. The wheel includes headline indicators in areas such as health, relationships, job satisfaction, economic security, education, environmental ...
GDP also does not capture certain phenomena impacting citizens' well-being. [56] For example, traffic jams could cause GDP to increase as there is a higher consumption of gasoline, however, GDP fails to consider citizens' well-being in terms of the quality of air due to air pollution from the traffic jams. [57]
How the health of the economy is measured, and why the GDP calculation matters.
GDP is misleading as an indicator or even as a proxy of the welfare of a nation, let alone as a measure of people's well-being, [2] although the makers of economic policy commonly think to the contrary.
But for all of GDP's fame, it has one major flaw. Flow versus stock GDP measures "flow," which is similar to a company's income statement. What it ignores is a country's "stock" -- the equivalent ...
Financial Times associate editor David Pilling writes that the problems with using GDP as a barometer go beyond masking inequality. Why GDP Is a Terrible Metric for Success and Wealth Skip to main ...
GDP does not measure factors that affect quality of life, such as the quality of the environment (as distinct from the input value) and security from crime. This leads to distortions - for example, spending on cleaning up an oil spill is included in GDP, but the negative impact of the spill on well-being (e.g. loss of clean beaches) is not ...