Question

True growth of a country cannot be measured by its GDP. Justify the above statement. 

Answer 1

The statement that "true growth of a country cannot be measured by its GDP" is justified because GDP focuses solely on economic output and ignores many key aspects of holistic growth. Here's why:

1. Social and Human Development: GDP does not consider crucial elements like health, education, and quality of life. A country's GDP may be high, but it still faces major obstacles such as poor healthcare, low literacy rates, and social inequality, all of which restrict meaningful progress.
2. Income Distribution: GDP measures economic activity but not wealth distribution. High GDP growth may favour the wealthy while reducing those in need, failing to represent societal development.
3. Environmental Impact: GDP ignores environmental damage caused by economic expansion. GDP is a poor indicator of long-term well-being since overexploitation, pollution, and biodiversity loss can lead to unsustainable development.
4. Quality of Life: GDP ignores work-life balance, mental health, and personal rights, which boost happiness and well-being. GDP growth may not benefit these places.