What GDP, Rankings & Statistics Don’t Tell You About Real Life
January 24, 2025
We often hear governments talk about rising GDP or higher per capita income. We also see global rankings where countries move up or down. But these numbers do not tell us how easy or hard it is for ordinary people to live with dignity and meet their basic needs.
Let’s start with GDP. That’s the total value of everything produced in a country over a year, measured in money. If more houses are built, or more cars are sold, or exports rise, the GDP goes up. But that number alone doesn’t tell us who is actually gaining from all this. A few businesses might be doing well, while millions still find it hard to buy vegetables or pay the rent.
Imagine a wedding with 100 guests. Suppose 80 guests don’t get any food, and 20 guests eat five plates each. The total comes to 100 plates, which sounds like enough. But most people stayed hungry. That’s how GDP works. It tells you the total value of what was produced, but not who benefited from it, or how fairly those benefits were spread.
Now take per capita income. It means average income per person. You get it by dividing the country’s total income by the number of people. But averages can be misleading. If one person earns 10 crore rupees and 10 others earn 10,000 each, the average will shoot up to 91 lakh per person, even though most people are still earning very little.
Governments also point to employment rates to show that things are getting better. But the ground reality may be different. More people might be working, yes, but what kinds of jobs do they have? Are they steady? Are people self-employed in work that barely pays? Are wages enough to live with dignity? You can have more employment and still see more stress, more insecurity, and more people struggling to make ends meet.
Think of gig workers. These are people who deliver food, drive cabs, or take up short jobs through apps. They are counted as employed in government data. But many of them earn far too little to support a family. Some stay logged in all day, waiting for just a few orders. On paper, they have jobs. In real life, they have no steady income and no safety net.
Economist Amartya Sen argued that development is not just about income, but about what people can actually do with their lives. If someone can’t afford medicine, or school fees, or a basic meal, it doesn’t matter what the GDP says. The goal of an economy is to make people’s lives better. It should help everyone meet their needs, find work with dignity and live safely and securely. People are not here to serve economic targets. Economic systems are meant to support human well-being.
Let’s take another example, nutrition. Official data may say poverty has fallen. But what if children are still underweight, or anaemic? Or families are eating fewer vegetables to cope with rising prices? That’s a sign the economy may be growing on paper, but shrinking in the kitchen.
Governments also flaunt rising income levels to claim progress. But these claims don’t mean much unless we consider the cost of living. For instance, if people’s incomes rise by five percent, but food, fuel, rent, and school fees rise by 10 percent, families end up with less purchasing power than before.
So whenever governments present numbers like GDP or international rankings as signs of progress, it’s worth asking what they don’t reveal. Is housing affordable? Are school dropouts falling? Are essential medicines easier to get? Are people earning enough and earning it steadily?
Numbers are useful, yes. But they can be misleading if we don’t ask what they leave out.
So next time someone points to a rising GDP or a better ranking, don’t just nod. Ask: Are people living better? Are families less anxious about the future? Are workers treated fairly?
In fact, those of us in the middle class should ask the people who work in our homes and offices, such as domestic workers and cooks, whether their lives have visibly improved. And what about my own life? Has anything truly changed for the better?
Because progress that cannot be seen, felt, or shared is not progress at all.