Limitations of GDP- Macro Topic 2.2

Jacob Clifford discusses the reclassification of economics as a STEM major and explores whether economics is a science. He highlights the limitations of GDP in measuring standard of living, focusing on population, inequality, environment, and the shadow economy. Clifford suggests alternative measurements like the Happiness Index but notes their subjectivity. Despite its flaws, GDP per capita remains widely used. The video concludes with a memory tool and a pop quiz to reinforce learning.

What are the environmental considerations that GDP fails to account for?

Describe the concept of the shadow economy and its implications for GDP measurement.

What alternative measures to GDP have been suggested to assess standard of living?