Solution

Using GDP as a gauge of a nation's prosperity has a number of drawbacks. The total aggregate value of all commodities and services generated within the borders of a nation or an economy is known as GDP (Gross Domestic Product). A country's GDP can be a reliable indicator of its economic size, growth, and value. In essence, it is a complete measurement of all economic activity in the economy. The link between GDP and welfare is debatable and inconclusive. Listed below are several arguments against using GDP as a gauge of a nation's welfare.
(i) GDP just allows us to estimate an economy's overall income. It doesn't give us any information on how people's earned income is divided among them. In countries with a high percentage of inequality, growth in GDP disproportionately helps the wealthy, leaving the typical individual with fewer benefits.
(ii) The environmental costs of production and development are not taken into account by GDP. The GDP may be impacted by a factory that pollutes and damages the environment, but the GDP does not account for the long-term costs and effects of such manufacturing. As a result, an economy's GDP value does not accurately reflect the state of the environment.
(iii) Consumerism and spending may not always equate to a person's "well-being." Although a nation's residents may increase their spending and income, other elements, such as access to healthcare and education, are crucial for their well-being. GDP does not accurately reflect the standard of living and quality of life of the typical citizen.
(iv) A multitude of socioeconomic elements, including gender development, literacy, freedom, and equality, contribute to a society's overall well-being. These aspects of societal advancement and human development are ignored by GDP.