In the News Teaching Activity – Gross Inclusive Income - a better measure of national economic progress than GDP? (Nov 2024)

The UK's ONS is pioneering a more holistic way to measure economic success through Gross Inclusive Income (GII), which incorporates sustainability and wellbeing alongside traditional financial metrics.

By including factors like renewable energy’s environmental benefits, unpaid household work, and intangible assets, GII offers a nuanced view of economic growth that transcends GDP's limitations. While GDP counts all monetary transactions, even those harmful to the environment or societal wellbeing, GII captures contributions like family caregiving and reduced carbon emissions, reflecting a more sustainable and equitable economy. This innovative metric reveals the UK’s strides in renewable energy and highlights the need to address declines in natural and human capital, providing a clearer picture of national progress beyond financial transactions alone.

Housework to green energy: the new markers of growth in rival metric to GDP | Economic growth (GDP) | The Guardian

1. Explain the difference between Gross Domestic Product (GDP) and Gross Inclusive Income (GII).

2. What are the limitations of using GDP as a measure of economic success?

3. Discuss the advantages and disadvantages of using a measure of economic success such as GII.