Eli5: What is gdp? Why its so important? And why a lot of polls not using it are said to be misleading?
In: Economics
The other comment is a very good answer, I just thought I’d provide a little extra context.
“Why would it be excluded as a metric if it’s so useful?”, you might be thinking. And that’s because it what they’d call a “macroeconomic” factor, meaning it works on a large scale—the whole country— and a large scale only. Overreliance on macroeconomic factors falls under criticism because, for example in the case of GDP, it just means that *someone* is making money.
If 99% of the population lives in abject poverty scraping together scraps to live while slaving away for peanuts, and the other 1% is an exploitative megacorporation throwing babies into a woodchipper for record profits, the takeaway is “the economy is on the right track!”
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