2026 JULY ISSUE
THOU SHALL MODIFY
OUR
GROSS DOMESTIC
PRODUCT
Written by ANDREW SIA
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From the Desk of the Publisher
Nations celebrate rising GDP, higher per-capita income, and stronger economic growth. These achievements deserve recognition. Yet behind every percentage point are millions of human lives. Economic success should not be measured only by the wealth a nation creates, but also by the dignity, hope, health, security, and opportunities enjoyed by its people. The true strength of a society is found not merely in the size of its economy, but in the wellbeing of its men, women, and children who make that economy possible.
We read the economic figures of:
– China – nominal GDP $38.2 trillion, GDP per Capita $27,105 and GDP growth 5%.
– United States – nominal GDP $29.2 trillion, GDP per Capita $85,810 and GDP growth 2.8%.
– European Union (27 nations) – nominal GDP $23 trillion, GDP per Capita $51,000 and GDP growth 1.5%.
This can bring us into deeper thoughts, and hopefully that this will create resonance for our compassion and humanity which should stand firmly alongside prosperity.
I hope that this “commandment” will turn our GDP from a cold number into a moral question: “Does our economy enlarge human dignity, compassion, health, hope, and fairness, or only production and profit?”
Introduction
GDP is an incomplete and increasingly outdated measure of a nation’s report card for its performance, although it is still being used today.
GDP (Gross Domestic Product) measures:
– Goods produced
– Service provided
– Economic transactions
– National income
It tells us how much economic activity occurs, but it doesn’t tell us how well the people are actually living.
In was already in 1968, President Robert F. Kennedy made his famous quote: “GDP measures everything except what makes life worthwhile.”
GDP Formula
The standard formula for GDP that economists use is called the Expenditure Method:
– GDP = C + I + G + (X – M)
Whereas:
– C = Consumer Spending (Households buying goods and services)
– I = Investment (business spending on factories, equipment, software, inventories, housing construction)
– G = Government Spending
– X = Exports
– M = Imports
The term (X-M) is known as Net Exports.
The U.S. economy is heavily driven by, for instance, we can refer to different economies as the following:
– Large consumer spending – C
– Strong investment – I
– Significant government spending – G
We have to know that consumer spending alone is roughly 65-70% of the U.S. GDP.
China has historically relied more on:
– Investment – I
– Manufacturing exports – X
In recent years China has been trying to increase consumer spending and reduce dependence on property investment.
European Union is primarily composed of market economies with strong social welfare system, and relied more on:
– Strong exports – X, especially with Germany and northern Europe
– Moderate consumer spending – C
– Large special spending through governments – G
A Wellbeing Perspective
GDP measures the size of the economic engine and in recent years economists have increased supplemented GDP with measures such as life expectancy, education, productivity, environmental quality, and wellbeing indicators.
A wellbeing perspective is asking additional questions, such as:
– Are people healthier?
– Are families stronger?
– Are communities more connected?
– Are the elderly treated with dignity?
– Are younger people hopeful about their future?
– Is the environment being preserved for the next generation?
– Are people finding purpose and meaning in life?
These questions do not appear in the GDP formula, but they are essential to the quality of life of a society. We don’t want to see a nation grow richer while its people grow lonelier. We want to see more families bond together. We don’t want to see advanced technologies taking over us while losing sight of compassion and wisdom.
We want to ensure that economic progress serves human wellbeing rather than the other way around. A healthy society needs economic strength to provide resources and opportunities, and faith, family, compassion, and purpose give those resources meaningful.
Alternative Measures
There are alternative measures other than what the economists are using today. We can find the following organizations:
United Nations Development Program Human Development Index (HDI) measures:
– Life expectancy
– Education
– Income
Bhutan Gross National Happiness (GNH) measures:
– Psychological wellbeing
– Health
– Education
– Environment
– Community vitality
– Culture
Genuine Progress Indicator (GPI) measures:
– Pollution
– Crime
– Income inequality
– Loss of natural resources
OECD Better Life Index measures:
– Housing
– Jobs
– Health
– Education
– Environment
– Work-life balance
GDP still remains important as it raises valid questions such as:
– Can a nation pay its debts?
– Can it fund healthcare?
– Can it support the military?
– Is the economy expanding or shrinking?
GDP is a good tool of economic capacity, but it is not a complete measure of human flourishing.
From a Christian Perspective
As Christians, we celebrate prosperity when it uplifts people, but we also remember that the true measure of a society is not only what it owns, but how we love, serve, and care for one another. It is the mission that we have developed to help people of age with dignity, remain connected to their communities, and find purpose in every season of life. And for these reasons we have created The Wellbeing Forum to encourage others to look beyond the numbers and see the people behind them.
We remember a Scripture which says: “What good is it for someone to gain the whole world yet forfeit their soul?” as in Mark 8:36.
We can apply this for an ethical parallel by asking ourselves: “What does it profit a nation to gain a larger GDP, if its people lose their hope, their compassion, their families, and their sense of belonging?”
What good when we find a nation becomes wealthier while its people become lonelier? A nation can have the modest GDP growth yet enjoy strong families, healthy communities, and have a sense of good purpose. There is the debate for an economy to have better lives than more output.
Our Wellbeing Forum is promoting dignity, mobility, companionship, compassion, quality of life for older adults, and better opportunities for our younger generation.
Probably we should refrain ourselves from consuming more but only with quality and meaningful causes. We ought to celebrate prosperity when it can uplift people. True measure of a society is not only what it owns, but how it lives, serves and cares for one another. Always remember there is a part of you inside me, and a part of me within you. Capito, amico mio?