GDP doesn’t count for anything sold illegitimate, such as drugs. It also does not measure anything that is produced or consumed in your own home, like the fruits or vegetables you grow in your yard. To sum it up if it can’t or does not enter the market place it will not be measured in the GDP, because it is too difficult to keep track of something that hasn’t been through the market. The problem with the way GDP is set up is that GDP can only be added up nothing can be subtracted. So when the value of a good goes down GDP will count the number it was originally at and not the number it dropped to. That being said, that number will actually be counted twice which makes the information that you’re receiving inaccurate. GDP was constructed so that it could only account for finished goods and services. GDP doesn’t account for the cost and benefits, or anything that doesn’t go through the market, which makes it
GDP doesn’t count for anything sold illegitimate, such as drugs. It also does not measure anything that is produced or consumed in your own home, like the fruits or vegetables you grow in your yard. To sum it up if it can’t or does not enter the market place it will not be measured in the GDP, because it is too difficult to keep track of something that hasn’t been through the market. The problem with the way GDP is set up is that GDP can only be added up nothing can be subtracted. So when the value of a good goes down GDP will count the number it was originally at and not the number it dropped to. That being said, that number will actually be counted twice which makes the information that you’re receiving inaccurate. GDP was constructed so that it could only account for finished goods and services. GDP doesn’t account for the cost and benefits, or anything that doesn’t go through the market, which makes it