Part 3/11:
One critical shortcoming of GDP is its exclusive focus on monetary transactions involving final goods and services. It completely overlooks unpaid labor—work essential for societal functioning but not compensated financially. For instance, a stay-at-home parent performing caregiving, cooking, and household chores adds immense value to society, arguably worth hundreds of thousands of dollars if valued at market rates. Yet, GDP remains silent on this contribution, failing to capture the true scope of societal well-being.