How might the quality of life be adversely affected by an in

How might the quality of life be adversely affected by an increase in GDP?

Solution

GDP adversely affects the quality of life. Improved GDP contributes to higher production and increased working hours. It brings in work stress, and dreadlocks the quality of life. This higher production can lead to externalities like environmental degradation and adverse quality of life. GDP usually benefits only the owners while the labourers are always at the worse side. GDP does not account for any work done outside of monetary system. It does not take into account the working hours, leisure time, inequality in income distribution. When increase in GDP happens there is an unbalance of overall factors responsible for wealth which creates a negative influence on overall wealth regarding environment and culture. GDP measures the total production for a nation and gives us an average amount of output per person, but it never tells us how it is divided among residents. GDP doesn\'t take into account the negative effects on environment or other externalities. Hence increase in GDP can adversely affect the quality of life.