Question

Why higher GDP per capital may not necessarily mean a higher non-material wellbeing? I saw when GDP per capital grew, the life or education improved as well (non-material wellbeing). Could you give me some ideas?

Answer 1

GDP is an indicator of a society's standard of living , but it is only a rough indicator because it does not directly account for leisure, environmental quality ,level of health and education activities conduct outside the market, changes in inequality of income increases in variety , increase and technology or the positive or negative - value that society may place on certain types of output .

The standard of living in all element that affects people's happiness whether these elements are bought and sold in the market or not.

Faster growth in GDP expands the overall size of the economy and strengthens fiscal conditions. Broadly shared growth in per capita GDP increases the People's material standard of living.

Many economists and academic have observed that Income is not the only determinant of well-being, so other metrics have been proposed to measure the standards of living . But in general well-being is dependent upon good health , positive social relationships and availability and access to basic resources. (For example - shelter , income).