ABSTRACT
Economists dating back to Simon Kuznets, the originator of US national accounting systems, have warned that gross domestic product (GDP) is a specialized tool for measuring market activity, which should not be confused with national well-being. Government programs and investments in technology get the green light only when they are predicted to spur GDP growth. Economists, bankers, and businesspeople pop the champagne corks when they hear "good news" about quarterly GDP numbers. And while the United States leads in GDP, it also leads in military spending, the number of people in prison, and the percentage of people who are obese. Even if increases in GDP produce increases in well-being, ceteris paribus, many other factors may be equally or more important in determining well-being levels. In other words, well-being is clearly multidimensional. The Stiglitz-Sen-Fitoussi Commission, for example, defined eight dimensions of well-being, including material living standards, health, education, political voice, social connections, and the environment.
