While nominal gross domestic product can be a good indicator for how an economy is growing or shrinking, it requires more information in order to tell a complete picture. Gross Domestic Product does not tell us economic growth relative to population size. If two nations have the same GDP in 2 consecutive years, we will learn more about them by looking at GDP per capita than GDP on its own.

Similarly, GDP does not consider the second-hand sale of goods. Apps like Offer-Up, Facebook Marketplace, LetGo, and even Ebay have made passing goods on to others at reduced prices far easier and more likely than ever before. A family with limited income can furnish their entire home and still have money to spare without ever buying a new product. Gross Domestic Product misses out on an entire section of economic activity - especially low-income activity.

Finally, GDP does not rate the marginal value consumers place on the purchase of products. I might be far more satisfied with a $1 bag of frozen vegetables than the person sitting next to me on the bus. They might have a higher economic output when it comes to product purchases, but their satisfaction from total purchases could be far lower than mine with fewer dollars spent on goods.

Do you agree or disagree with this discussion?