What is a key critique of using Gross Domestic Product (GDP) as an indicator of progress?

The critique that Gross Domestic Product (GDP) ignores social costs and income inequality is significant because GDP is primarily a measure of economic activity, focusing on the total value of goods and services produced within a country. While GDP can indicate economic health, it fails to account for the distribution of wealth among the population. High GDP growth may benefit certain segments of society while leaving others behind, leading to increased income inequality. Additionally, GDP does not factor in social costs such as health implications of pollution or the loss of natural resources, which can adversely impact societal well-being. Therefore, using GDP as the sole indicator of progress can present a misleading view of a nation's overall development and quality of life.