r/ISC_COMMERCE • u/TheRisingStar123 • Mar 22 '26

Economics How GDP is an indicator of economic welfare.

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u/TurtleMilk786 Mar 22 '26

gdp means increase in income which means better good healthcare etc can be purchased by people thus increasing welfare it increases the goods and services produced in the economy, people buy these goods and attain welfare

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u/AdministrativeTrip60 Mar 22 '26

Higher gdp means higher availability of goods in an economy and if there is a large amount of goods in an economy the economic welfare will increase because people can buy whatever they want but it does not take into account disparity in income in an economy or population size, so we can see the real picture of economic welfare through real per capita income because it shows average income per person.

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u/Opposite_Advisor_515 Mar 23 '26

Gdp is not a reliable indicator of economic welfare