GDP is a perfect measure of welfare

Do you agree pr disagree to the statement?

According to Sukirno (2010: 34), the meaning of GDP is the total value of all goods
and services produced in the region within a certain period (usually per year). Gross
Domestic Product calculates the production output of an economy regardless of who owns
the production factors. A country is said to experience economic growth when there is an
increase in the country's real GDP / GNP. The existence of economic growth is also an
indication of the success of economic development. Economic development is basically an
effort to improve the welfare of society on a large scale, that is, the scale of a country.
However, GDP weakness as a measure of economic growth is global in nature and does not
reflect the welfare of the population.
In 2008, Amartya Sen, Joseph E. Stiglitz, and Jean-Paul Fitoussi developed a more
comprehensive discourse on measuring welfare as a critique of the statistical measures of
GDP and per capita income which were considered to have many weaknesses. They offer two
main indicators: basic welfare and economic well-being which are referred to as UNECE /
OECD / Eurostat standards. economic welfare is measured through indicators: ownership of
real foreign financial assets per capita, real production capital per capita, natural capital per
capita, reserves of energy sources, reserves of mineral resources, stocks of timber resources,
and stocks of marine resources. For example, the size of GDP and per capita income only
reflects the size of the numbers (quantity), not quality. High GDP and income may not match
the quality of people's welfare.
Therefore, GDP cannot be said to be a perfect determinant of welfare in a country.
Because GDP only reflects quantity and cannot be the main reference as a determinant of
economic welfare in a country. Relative welfare is not only seen from the rate of increase in
income in a country, in other words we cannot conclude that the welfare of the whole society
is increasing.

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