The change in the United States from a rural,self-sufficient economy to an urban,market-oriented economy had the effect of

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The change from a rural, self-sufficient economy to an urban, market-oriented economy caused the growth in GDP to overstate the growth in economic well-being. This is because GDP only measures the value of goods and services produced and sold in the market, and does not account for non-market activities such as household production, subsistence farming, and volunteer work that were common in the rural economy. As people moved to urban areas and began to rely more on market transactions, these non-market activities were no longer counted in GDP, leading to a higher GDP but not necessarily reflecting an increase in overall economic well-being.

The Change in the United States from a Rural,self-Sufficient Economy