GDP vs. Human Development Index: US, China and Norway

Several commentators (e.g., [1] [2])  keep on taking me to task for citing GDP as if it was the variable of ultimate concern. I have repeatedly noted GDP is a measure of economic activity, not a measure of economic welfare. However, in order to deter these repetitive and sometimes sententious comments, I’ll provide some graphs to illustrate the difference between a measure of economic activity, and a measure of welfare.

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