An Alternative to GDP:

GPI - Genuine Progress Indicator

• Developed in 1995 • Attempts to measure factors

not measured by GDP • Adjusts for income

distribution• Focuses on economic well-

being not monetary transactions

• Adds for – Increase in leisure and

vacation time– volunteer and non-market

work

Genuine Progress Indicator (GPI)

Subtracts for • Crime = $40 billion/yr• Pollution and loss of natural

resources– Counts $1.2 billion in toxic

clean-up costs decrease• Health care expenditures

for preventable illness– Heart attacks– High blood pressure

• Loss in infrastructure – From natural disasters or

war • Foreign debt counts as

negative– GDP can count as positive

government spending