But all other things are not likely to be equal when it comes to consuming leisure. These examples show that, on the one hand, many social facts are not included in the GDP calculation and, on the other hand, events that do not contribute to human welfare raise the GDP. GDP is how we rank countries and judge their performance.
Especially social factors are not recorded in this measure. And GDP growth can provide the wherewithal for the other things we want in life: health, education, security, opportunity, goods. Also, it can be defined as the total market value of all final goods and services produced within a country in a given period of time.
In conclusion, G. Environmentalists have long lamented that GDP treats the plunder of the planet as something that adds to income, rather than being treated as an expense. To differentiate developed from developing countries, economists mostly classify nations into First, Second, Third and Fourth World economies Cryns,p.
GDP excludes the value of leisure: Leisure is an economic good. But we need to pay more attention to other measures to complete the picture, some of which already exist and some of which we may have to invent.
Companies have balance sheets as well as income statements.