GDP = Faulty
The method of measuring national welfare by means of GDP is said to be very inaccurate. GDP does not cover everything needed to make an accurate estimate. Gross domestic product does not take into account much of the production that has economic value. Volunteer work nor unpaid domestic services make it into these accounts. Also, our standard of living, general level of economic well-being, and benefits don't make it into the calculation either. Many think Gross National Product (GNP)is much more of an accurate way to measure the national welfare. GNP is the market value of all goods and services produced in one year by labor and property supplied by the residents of a country. Unlike GDP, GNP allocates production based on ownership. Net national product is another way to calculate. NNP is the total market value of all final goods and services produced by residents in a country or other polity during a given period. It is basically GNP minus depreciation.