What GDP Misses

GDP has serious blind spots. It counts cleanup spending as positive — the Exxon Valdez oil spill actually raised GDP, because the billions spent cleaning it up were added in while the environmental damage was never subtracted. GDP also ignores unpaid household work worth trillions every year.

A country could have soaring GDP while most citizens struggle, because GDP says nothing about distribution. It misses environmental degradation, mental health costs, and leisure time. Economists increasingly argue we need broader measurements of national wellbeing beyond this single number.