SHORTCOMINGS OF COMMONLY USED METHODS OF MEASURING THE ECONOMIC ACTIVITY OF THE COUNTRY

Abstract

The article analyzes the flaws of the classical measures of economic growth. It is based on the assumption that, while not questioning the quality of the GDP indicator as a tool for measuring economic activity, it points out that the way this indicator is constructed influences the actions of governments, citizens and other actors, affecting also non-productive areas. What we measure affects what we do - if production is measured, then the criterion determining the success of the state and society will be the growth of production, and not the level of education, health or state of the environment. Gross domestic product in many cases includes production that, from the point of view of the community, indicates unfavorable processes. These are the so-called anti-goods, i.e., phenomena that increase GDP, although they worsen well-being and are socially undesirable).