why gdp is flawed
âGDP is a flawed measure of human welfareâ. GDP has always been a measure of output, not of welfare. Using current prices, it measures the value of goods and services produced for final consumption, private and public, present and future.n a recent paper submitted as evidence to the LSEâs Growth Commission, I consider three common criticisms of GDP as a target of policy and explain why I think they are wrong (Oulton, 2012a): 1  The first criticism is that GDP is hopelessly flawed as a measure of human welfare.