GDP vs GPI : Which Measures The Economy Best? : The Inspired Economist

"The biggest difference between it (GPI) and GDP is what they class as costs and what they class as benefits. For instance:

Crime: GDP counts this as a benefit because it gives rise to property repairs, legal and medical fees etc; GPI counts it as a cost because it damages to people’s lives and leads to stress.

Volunteer Work and Education: GDP totally ignores these because no money changes hands; GPI values of both as a benefit for a growing economy.

Resources and Pollution: GDP counts both of these as an income, pollution twice over (once for creation and once for cleanup!); GPI counts both as costs.

So under GDP high crime rates, spending all hours at your desk and environmental damage are all good for the economy.

Conversely, under GPI low crime rates, pursuing amateur interests and education and careful stewardship of the environment are all good for the economy."