GDP In The United States

GDP is a measure of economic activity. GDP gives us a better idea of what is produced within the United States rather than what is produced by Americans-whether in the U.S or elsewhere. GDP is designed better to give information on the state of the business cycle of the United States because it only focuses on the activity within the United States. Switching to GDP makes it easier to compare with other countries because most countries were already using GDP.
What GDP measures and does not measure
GDP measures the production within the United States so it measures the production of goods and services in the economy. GDP does not measure the economic contribution of stay-at-home parents or output in the underground economy. So, it fails to …show more content…
If GDP took into account things that don’t have a measurable amount like pollution etc., we could get a fuller picture of how the economy is performing. Also, if GDP took into account the economic contribution of stay-at-home parents, barters, and cash only transactions it would create a fuller picture of how the economy is doing because these contributions are a big part of the economy. They are a big part of the economy because now of days there are still cash only restaurants and places even with the rise of credit cards as well as many people stay at home to take care of children as well as their parents. Lastly, if GDP was a better measure of welfare it would give us a picture better suited to see how are economy is performing because GDP only measure the production within the United States. So, if we have a major environmental event that affects welfare as well as damage to the environment. If the damage to the environment is affect welfare but not GDP. So, if GDP took into account welfare we would get a better picture because welfare indirectly affects the