Colorado Fiscal Institute Logo

Measuring economic well-being: Why GDP is the wrong metric

gpi-flag-web

 

Gross Domestic Product, or GDP, tells us a lot about what an economy produces and how much. But what does it tell us about whether most people are better off, economically speaking?

As a new research paper from CFI’s economist, Chris Stiffler, notes, economists for years have been trying to come up with a better way to measure economic well-being than GDP. What a number of leading economists have suggested in recent years is using a measure called GPI, or the Genuine Progress Indicator, to measure economic progress. Stiffler’s research calculates GPI, expressed as a per capita dollar figure, in Colorado for the first time.

What his research shows is that while GDP has continued to grow steadily for decades, Coloradans have not seen the same kind of economic progress.

Click here to read the research paper or check out our GPI two-pager.

Also, listen here to Stiffler explaining his research and the concept of GPI to Ryan Warner on CPR’s Colorado Matters.

Latest Insights

2026 Legislative Scorecard

Our second annual scorecard tracking the votes that shaped Colorado’s fiscal future. Colorado’s budget challenges didn’t appear overnight, and they won’t be solved overnight. In 2026, lawmakers faced difficult decisions…
Read the full post

Sign Up for Our Newsletter

From tax reforms to budget updates, we break down complex issues to keep you informed on policy decisions impacting our communities.

Your support makes it possible for CFI to provide information that policymakers, community leaders, and residents need to make the best decisions for themselves and their communities.

Colorado Fiscal Institute © 2011-2026. All Rights Reserved.