Turns Out GDP Does Matter. Just Look at What Happens When It Goes Up.

Oct 30, 2026 2:15 PM
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Turns Out GDP Does Matter. Just Look at What Happens When It Goes Up.
AP Photo/Jon Cherry

Everyone seems to have a problem with GDP these days. On the left, I can personally attest that nearly every college economics course begins with a lesson on why it falls short: it does not measure unpaid housework, rewards extraction and consumption, and ignores human welfare, equity, and environmental sustainability. On the right, the complaints are much the same, just with different priorities. GDP does not measure how satisfied people are with their lives, or it is a false idol that puts raw economic output ahead of social cohesion, family stability, and national identity. 

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And yet, for all the complaints about what GDP supposedly ignores, put GDP per person on a graph against many of those same concerns, and quite the inconvenient pattern emerges: richer countries are always doing better on the very measures critics insist we should care about instead. 

Start with exploitation, and the idea that economic output requires workers to sacrifice their personal lives to earn a wage. Look at the graphs: countries with higher GDP per person generally have less child labor, fewer hours worked per worker each year, and higher rates of life satisfaction. The supposedly exploitative pursuit of economic gain goes hand in hand with children staying out of the workforce and adults spending less of their lives on the job. That leaves more time for leisure and family, the very things we are told the pursuit of economic output sacrifices. 

Then take the environmental concerns. Higher GDP per person generally tracks with better plastic waste management, cleaner drinking water, safer food, and better living conditions.

The same pattern holds for human welfare more broadly. As GDP per person rises, hunger, child mortality, and maternal mortality generally fall, while life expectancy, access to doctors, literacy, and educational attainment improve. 

There is an odd assumption behind the claim that GDP is a faulty measurement: that people who care about economic growth just like watching numbers get bigger, with no concern for the people those numbers represent. Democrats accuse Republicans of feeding Americans into the machinery of capitalism. Now Republicans increasingly accuse other Republicans of the same thing: caring more about GDP than the people struggling to find work, afford groceries, or raise a family. 

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Both parties have fallen for progressivism. Politicians demand better healthcare, cheaper groceries, affordable gas, more childcare, the list never ends. But has anyone stopped to ask what economic system made those things widely available in the first place? Hell, what made so much of what they now take for granted possible at all? 

What keeps the shelves stocked at your local supermarket? What gets lifesaving medical technology into hospitals, books into people’s hands, and cars into their driveways? What puts food on the table for an entire society and makes clean drinking water something people can take for granted? And what drives the innovation that makes all of it cheaper, better, and more widely available to the average American? The free market.

And still, people fall for the idea that government can deliver more of those benefits by putting the market in chains, allowing it to operate only on terms dictated by politicians who cannot even run a postal service properly. 

Don’t fall for it. Economic prosperity is what drives the well-being of a society. It is the politicians who have made the issues the average voter worries about, worse. Healthcare is expensive because government tried to fix it. Housing is expensive because government refuses to let people build houses. Immigration is broken because government wrote terrible rules. Families are squeezed from both ends: welfare policies that can penalize marriage on one side, and government making life more expensive on the other. 

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Stop putting your faith in politicians who use your problems to gain power, then use their failure to solve them to demand even more. Put it in your fellow Americans, who want the same chance you do to work, provide for your families, and to build a better life. Put it in their ability to pursue their own interests by offering something of value to everyone else. That means putting your faith in the free market, not the politicians who keep promising to save you from it.

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