Wednesday, October 16, 2013

Is GDP a Good Indicator of how the Economy is Doing?

I don't believe that GDP is a good indicator of how the economy is doing.  GDP does not take into account anything that is sold on the black market.  Although it may be illegal and I personally do not approve of it, selling things in the black market provides jobs for some that are not qualified or are not in a position to get a job that counts towards the GDP.  No matter how hard the government tries to eliminate the transactions that happen illegally, they will always happen.  The black market provides jobs and keeps money flowing, but does not count towards GDP.  It's almost impossible to count the black market, so GDP cannot count it accurately. Therefore, GDP cannot accurately measure the economy's success.

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