No GDP is not good measure of well-being of society.

GDP does in fact help us to lead good

lives. GDP does not measure the health of our children, but nations with larger GDP can afford better
healthcare for their children. GDP does not measure the quality of their education, but nations with
larger GDP can afford better educational systems. For Example, everyone in the economy suddenly
started working every day of the week, rather than enjoying leisure on weekends. More goods and
services would be produced, and GDP would rise. Yet despite the increase in GDP, we should not
conclude that everyone would be better off. The loss from reduced leisure would offset the gain from
producing and consuming a greater quantity of goods and services. GDP includes government
spending, which includes military spending. Especially if the military is fighting wars we have no
business being involved in. GDP includes the cost of buying pollution-control equipment, but it does
GDP by definition is an
not address whether the air and water are actually cleaner or dirtier.
aggregate measure that includes the value of goods and services produced in an
economy over a certain period of time. There is no scope for the positive or
negative effects created in the process of production and development. GDP
also fails to capture the distribution of income across society – something that
is becoming more pertinent in today’s world with rising inequality levels in the
developed and developing world alike. It cannot differentiate between an
unequal and an egalitarian society.Environmental degradation is a significant
externality that the measure of GDP has failed to reflect.
Inflation is a sustained rise in overall price levels. Moderate inflation is
associated with economic growth, while high inflation can signal an
overheated economy.Inflation poses a “stealth” threat to investors because
it chips away at real savings and investment returns. Most investors aim to
increase their long-term purchasing power. Inflation puts this goal at risk
because investment returns must first keep up with the rate of inflation in
order to increase real purchasing power.For example, an investment that
returns 2% before inflation in an environment of 3% inflation will actually
produce a negative return (−1%) when adjusted for inflation. If investors
do not protect their portfolios, inflation can be harmful to fixed income
returns, in particular. For stocks, inflation can have a mixed impact. Inflation is typically
high when the economy is strong. Companies may be selling more, which could help their
share price. However, companies will also pay more for wages and raw materials, which
hurts their value. Whether inflation will help or hurt a stock can depend on the performance
of the company behind it. On the other hand, precious metals like gold historically do well
when inflation is high. As the value of the rupees goes down, it costs more rupees to buy the
same amount of gold. Real assets, such as commodities and real estate, tend to have a
positive relationship with inflation. To overcome the inflation, you must invest in financial
products like tax saving schemes in India that give you a higher rate of return as compared to the rate of
inflation.