3.1.5—GDP, GNI, and well-being

GDP/GNI measure marketed production or income; well-being also includes health, education, distribution, leisure and environment.

Unpaid care, inequality and pollution may be missing from totals.

Use the measure for its question, then add welfare indicators.

GDP per capita rises while pollution and inequality worsen; output alone cannot show welfare.

Higher GDP is not synonymous with quality of life.

For comparisons over time, use real rather than nominal data and preferably a per-capita measure when population changes; for comparisons between countries, also consider PPP. Even then, national-income averages omit distribution, unpaid work, leisure, environmental damage and many health or education outcomes. Complement them with multidimensional measures: the OECD Better Life Index compares several living-condition and quality-of-life dimensions; a Happiness Index uses reported life evaluation; the Happy Planet Index relates well-being and longevity to ecological impact. Each involves indicator and weighting choices, so use a dashboard rather than treating any one index as complete.