Why our obsession with GDP ignores harm done to welfare and the world


One of the first things economics students learn about is Gross Domestic Product (GDP)

GDP is also a central concept in many political debates, including Brexit.

Will it rise?

Will it fall?

What effect will this have on our lives?

Bez 1aGross Domestic Product measures the total value of goods produced and services provided in a country, calculating the net value added by each economic “actor”.

So if you produce a car sold for £10,000 but you bought parts and materials worth £8,000, then your contribution to the GDP is £2,000.

GDP assesses the size of an economy as well as the incomes it generates and the pace at which it grows (or…

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