GDP Counts in War and Peace

The size of an economy may not capture individual well-being, but it says a lot about a nation's ability to fight and win wars.

Nothing boosts GDP like a Vickers Mark VI.

Source: Fox Photos/Getty Images

A question I often hear people ask is: Why should we care about a country’s total gross domestic product? After all, India has a total GDP many times that of the Netherlands, but the Netherlands has a much higher standard of living. Shouldn’t we concern ourselves only with per capita GDP -- or some other more accurate measure like median per capita income?           

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