1. Do economists overstate the value of GDP as a measure of economic welfare?
2. Should GDP be replaced as a measure of growth in the overall economy?
1. Yes. GDP refers to the market value of all the goods and services produced within an economy in a given year. Therefore, GDP only represents the total value of the goods and services produced. It does not tell about the quality of the goods and services or the distribution of income in the economy. Therefore, GDP itself does not completely represent the economic welfare. Economic welfare includes a number of things such as health status, the living standard of people, life expectancy, level of happiness, pollution level, etc. GDP does not consider these factors. Therefore, I think economists overstate the value of GDP as a measure of economic welfare.
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