Since environmental and health damage is not factored into reducing GDP - and in fact the resulting health costs and the costs of cleaning up the environment would also inflate GDP, a GDP obsessed government would try and dismantle environmental and health regulations.

In this quote, Prashant Bhushan, an Indian lawyer and activist, critiques the limitations of Gross Domestic Product (GDP) as a measure of a country’s economic progress. He explains that environmental and health damage are not accounted for in the calculation of GDP. In fact, the costs associated with healthcare and environmental cleanup—which arise from damage caused by industrial activities—can actually inflate GDP, creating a misleading picture of economic well-being. Bhushan argues that a government overly focused on GDP may ignore or even seek to dismantle environmental and health regulations, as these policies might be seen as obstacles to short-term economic growth.

Bhushan’s statement highlights a critical flaw in the way economic success is measured. By not factoring in the externalities (like pollution or public health costs) that result from industrial growth, GDP fails to provide a complete picture of a nation’s well-being. As a result, policies that prioritize short-term economic gains may overlook the long-term social costs of environmental degradation and poor public health, which ultimately affect the quality of life.

The origin of this quote is tied to Bhushan’s advocacy for sustainable development and his concerns about the disconnect between economic policy and environmental responsibility. As an activist and lawyer, Bhushan has consistently pushed for a more holistic approach to governance, one that considers not just financial growth but also the broader social and environmental impacts of economic decisions. His critique of GDP as a sole indicator of success is part of a broader conversation about how nations should prioritize well-being over mere economic output.

Ultimately, Bhushan’s quote advocates for a shift away from GDP-centric policies towards a more balanced approach that includes the protection of health and the environment. He argues that by ignoring these critical factors, governments may inadvertently foster policies that harm the very aspects of society they seek to improve. This perspective calls for a reevaluation of how economic growth is defined and the importance of incorporating sustainability into the measurement of national success.