Reply #37: GDP is NOT a good measure of economic health or quality of life.

[mbperrin]

Example from my old economics adviser in the early 70s:

There's a lush tropical island with perfect weather year round. Fruits grow without human cultivation, fish are plentiful and can be scooped by hand from the water standing near the shore. No clothing or other shelter required, because the weather is so perfect. 1,000 people live here. Now what is the GDP here? Zero or close to it.

Now introduce universal cancer to the island, build a hospital to treat it, doctors, heavy equipment, and get the finest facilities anywhere at a cost of $1 million per person. Now what is the GDP? Around a billion dollars, clearly higher than before. Anybody want to argue the second scenario is better?