However, it is
increasingly the case that the economy is dominated by non-marketed services, such as
public health and education provision. These are included in GDP, but the fact that output
in these areas is difficult to measure means GDP is now a less-r eliable representation of
Furthermore, some activities that increase production are deemed to contribute fully
to GDP even though they have negative impacts on society’s wellbeing.
This is absolutely true. Government spending is counted as a contribution to GDP by counting how much is spent, not the value of the production that comes frm that spending.
If we\’re to improve our measurement of GDP then we really ought to solve that problem, eh?