Sign in or 
Location: Macroeconomics Unit I - Measurement of Economic Performance
Discussion: Is GDP really a good measure of well-being?
Category:
Discussion Forum /
General Discussion
Share this|
claire425 |
20. RE: Is GDP really a good measure of well-being?
Feb 6 2008, 9:29 PM EST
GDP does not measure the individual's well-being since nations that have low GDPs could be actually having a high satisfaction on living such as Bangladesh. Although the United States' social welfare system might not be better off than many European countires, still GDP does not seem to measure these factors. Despite these facts, still GDP can help to measure how the country is doing compared to the previous year's performance, and in which situation they are, expansion or recession.
2
out of
3 found this valuable.
Do you?
|
kl_0511 |
21. RE: Is GDP really a good measure of well-being?
Feb 9 2008, 2:35 AM EST
Although, GDP is not an indicator of an individual well-being, it is important in comparing the relative values of the huge number of goods and services produced in different years. Also, real GDP allows us to measure GDP that has been deflated and inflated to reflect changes in price levels. Therefore, GDP is and important monetary measure of economy.
0
out of
1 found this valuable.
Do you?
|
|
dayzrox |
22. RE: Is GDP really a good measure of well-being?
Feb 9 2008, 9:27 AM EST
It is clear that GDP is significant and has its own merits. Otherwise, countries would not be calculating tremendous amounts of quantitative values. I believe that GDP, in the world today, serve as a baseline that allows nations to compare their relative growth. However, one cannot overlook the flaws of GDP such as its inability to take into account nonmarket activites, leisure, improved product quality, black market (the underground economy), the detrimental effects upon the environment, and the composition and distribution of output. Moreover, as many people have already mentioned above, a population's well-being is also not taken into account. I believe, however, that despite such flaws, levels of most measures of well-being are closely correlated to GDP per caita. Thus, I believe that despite the fact that there are obvious loopholes to GDP, such measurement remains imperative for assessment of economies. The most optimal measurement would of course be a form of measurement of well-being complemented to create a comprehensive picture of the nation.
0
out of
3 found this valuable.
Do you?
|
|
JackLo |
23. RE: Is GDP really a good measure of well-being?
Feb 12 2008, 2:49 AM EST
As we all know, GDP can't measure EVERYTHING. It doesn't take into account many things, one being the overall satisfaction of the people. I don't think GDP really measures a general well-being of the country. It only measures the performance of the nation's economy. GDP and GDP per-capita does give some indication as to the general economic situation of the country and its citizens.
1
out of
2 found this valuable.
Do you?
|
tsaojames1991 |
24. RE: Is GDP really a good measure of well-being?
Feb 12 2008, 3:22 AM EST
Economics isn't about education, crime rates, divorce rates, etc., it is about the amount of trade that is going on in the society and its relationship to the society's scarce resources. Many times a country's GDP might reflect the well-being of its people, but I do not think that is the main purpose of GDP. What's so special about GDP is it tells us how much trade is going on in the country and how the resources are flowing. It may be inaccurate to say GDP is a narrow figure, because by comparing the GDP of different years, it tells us how the MARKET is doing. If you want to know about how the people really are, GDP per capita is what you're looking for.
1
out of
3 found this valuable.
Do you?
|
|
jeffye |
25. RE: Is GDP really a good measure of well-being?
Feb 12 2008, 4:52 AM EST
The GDP of each country allows a loose comparision among each nation. However, the GDP, just like the grades of a student, doesn't tell the whole story. Countries with high GDP's might also have higher crime rates, higher levels of poverty, or higher suicide rates. Countries with lower GDP's might have free medical care, good public transportation services, or low pollution outputs. GDP is used as one way to measure a country's economic growth or reduction. Although GDP does not tell everything, it is still necessary as a form of comparison used to evaluate a country's economic standing.
2
out of
3 found this valuable.
Do you?
|
|
judy_chen |
26. RE: Is GDP really a good measure of well-being?
Feb 12 2008, 10:37 AM EST
Well, GDP is a monetary measure, so it does not measure how happy people are. The aim of GDP is to let us understand the situation of a country's economy. Economists use a narrow figure to measure the well- being of entire nations because GDP per capital includes not only the total output a nation produces, but also includes how much per person produce since it includes the poplutiona of a nation.
1
out of
3 found this valuable.
Do you?
|
|
KristieChung |
27. RE: Is GDP really a good measure of well-being?
Feb 12 2008, 11:59 AM EST
GDP helps economists to understand the economies in the world; by calculating GDP's, t hey are able to compare the economies of different countries, analyze whether an economy is experiencing recession or growth, and even predict trends in the economy. However, like almost everything else, GDP has its flaws as well as it does not indicate the well-being of the individuals.
0
out of
2 found this valuable.
Do you?
|
HowardJing |
28. RE: Is GDP really a good measure of well-being?
Feb 13 2008, 7:06 AM EST
Even though GDP isn't that great for measuring an individual's happiness, it is still a valuable tool for economists to use on a national scale. Since every individual winds up making various amounts of money and has various amounts of utility and happiness, you cannot say that if somebody lives in the U.S. they will definitely be fat and rich. On the other hand, not everybody in Nigeria is starving for food.Since GDP measures a nation's gross domestic product, it is useful for keeping track of a nation's growth as a whole. If a country's GDP is growing at 10% a year, then you know for a fact that somebody is making money. The individual's utility is another story. 1 out of 2 found this valuable. Do you? |
|
J.Chiang |
29. RE: Is GDP really a good measure of well-being?
Feb 13 2008, 9:16 AM EST
We already know that leisure, health, well being, etc. aren't included in the GDP. However, people are interested most in money, whether they admit it or not. It sounds more impressive to say, "My country has more money than yours," than, "The citizens in my country are happier" (although happiness is very very important!) Also, happiness and well-being are hard to quantify and hard to measure. It is difficult to get an accurate measurement of the average happiness in a nation. Of course, in an ideal world, we would have GDP and another measurement that included happiness, crime rates, the environment, and so on...
0
out of
3 found this valuable.
Do you?
|
|
serenatu |
30. RE: Is GDP really a good measure of well-being?
Feb 14 2008, 9:58 AM EST
GDP is a good way of measuring the well-being in a nation, however, it only takes into account of the dollar value of the final goods and services; it does not take into consideration of people's health. Therefore even though a country has a really high GDP, it does not mean "everyone" in the country is doing well. GDP has some flaws but it's still a really good way of measuring the well-being in a nation. :)
0
out of
2 found this valuable.
Do you?
|
|
AndreaEggli |
31. RE: Is GDP really a good measure of well-being?
Oct 20 2008, 9:45 AM EDT
GDP is a measurement of how good the countries financial state is. When the country has a balance between consumption, governmental spending and investments then the country can control its economy. Like this people are benefiting because when the country has a high GDP, the country knows that its imports and exports are benefitting the citizens. Rates of divorces and wars has nothing to do with the economic wellfare. These aspects are depending on each individual seperatly and do not effect the whole country. The government can not intervere with the citizens personal assepects or problems.
Do you find this valuable?
|
GuillaumeDubois |
32. RE: Is GDP really a good measure of well-being?
Oct 20 2008, 3:29 PM EDT
The definition of what GDP is seems to be repeated in nearly every post, and gets a little repetitive, although it is correct and confirms Mr. Welker's statement. In the end, we need to know what exactly is the most efficient way to portray a nation's economic state. Of course, education etc. determines the state of the people. But I think that a GDP more closely and carefully shows us the state of the economy - money; profits, debts...If we go further, we can also see that depending on the image a nation is trying to create of itself, a choice can be made to accommodate. For example, a nation may have a very poor literacy rate and percentage of high school years completed however has a very profitable (although exploited, meaning the people aren't receiving the profits) economy which is worth investing in and can bring growth to a firm or market. With this information, the government might advertise using the industry as a focus point, not the literacy rates. Do you guys think that this is actually a possible strategy that transitioning economies might use to convince they are, in fact, transitioning successfully? Do you find this valuable? |
rohanbhanot |
33. RE: Is GDP really a good measure of well-being?
Oct 21 2008, 4:15 PM EDT
I don't think GDP is a measure of well being. It merely tells the total value of the final products produced in a year, which is not even remotely connected to well being and happiness of the people. It should only be connected to the condition of a nation's economy.If GDP would measure happiness, then North America or Europe would be the happiest place on the earth. But it is clearly not so. Although people here have amassed hoardes of wealth, they do not appear to be happy. Things like stress are still commonplace. On the other hand, many people from the so-called 'third world' are happier, even though their countries have a comparitevely lower GDP. Take for instance the Thai Buddhist monk Thich Nhat Hanh. He truly appears happy, even though he has almost nothing from an economic viewpoint. No measure can come close to measuring well being and happiness. Do you find this valuable? |
alexsvensson |
34. RE: Is GDP really a good measure of well-being?
Oct 22 2008, 3:42 AM EDT
It has become seemingly clear throughout the discussion that GDP does not reflect the actual happiness, well-being and education of a country's population. However, it is important to note that GDP has some influence. Sure, most people relate well-being with having a good education, a safe natural environment, good infrastructure, but isn't at least a part of well-being derived from consuming goods and services? Of course it may only be a small bit of "happiness" that is derived from consuming, but surely it does play a role. Therefore, it is not possible to entirely disregard GDP when looking at a societies welfare. The more developed world usually has a higher GDP than other developing parts of the world, the trend also stays true to the welfare of people, at least in general. In the more developed world there is generally a better health-care, a better education system and better and more stable infrastructure. It is fair to say that GDP is related to a country's welfare, but doesn't represent it accurately. It is important to remember that as the GDP rises, a country is benefitting and gaining from trade, and in turn the rewards go to the citizens. And, as Rohan stated above, there is really no perfect measurement that can be use to measure well-being and happiness. Do you find this valuable? |
|
jcurry27 |
35. RE: Is GDP really a good measure of well-being?
Oct 22 2008, 5:09 AM EDT
GDP refers to Gross Domestic Product and is the "The total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports."In my opinion GDP is not a good measure of a well being because it contains goods and services that do not increase a country’s economic wealth, and, furthermore, excludes goods and services that do. it forgets such things as -household production -voluntering work -public administraton Because GDP does not include these it is not an accurate measure of a well being. Do you find this valuable? |
oliverbroks |
36. RE: Is GDP really a good measure of well-being?
Oct 23 2008, 5:36 AM EDT
while it says little about the individual it can say a lot about an economy, the USA's GDP will far outweigh that of Monaco; showing that the US's economy is much stronger (maybe not for long :O). However the average person in Monaco far richer and has a better standard of living than an average person in the US. Figures and statistics should always be taken with a pinch of salt. Do you find this valuable? |
|
mkaga |
37. RE: Is GDP really a good measure of well-being?
Oct 23 2008, 6:26 AM EDT
It is true that GDP does not include a lot of factors of the peoples well being but it shows a ruff overview of the well being of the economy. It shows the average consumption of the people in a country but not other aspects like education or health in the country. It is not 100% reliable but it is still quite useful to compare economy of countries.
Do you find this valuable?
|
hetherington |
38. RE: Is GDP really a good measure of well-being?
Oct 23 2008, 7:53 AM EDT
I believe that GDP can be a very misleading generalization of how a country or person is going. GDP doesn't always represent the whole population of a country or place, and people often are not honest with how much they make with having contraband or illegal materials or services for sale which they cannot enter into the tax system. GDP is also misleading because you have to base the well-off-ness of a place by basing it relatively on how much everything else costs to how much you make.
Do you find this valuable?
|
|
taylorcurry |
39. RE: Is GDP really a good measure of well-being?
Oct 23 2008, 8:24 AM EDT
GDP is the quantitative measure of goods and services that are produces in a country. So if a country's GDP increases it does not necessarily mean that the well-being of people has improved. GDP does not take disparity in incomes between the rich and poor into account. GDP ignores voluntary work, such as domestic work. GDP ignores externalities such as damage to the environment. GDP does not measure the sustainability of growth. A country may achieve a temporarily high GDP by over-exploiting natural resources or by misallocating investment. So although GDP may be a good measure in the overal well-being of an economy. It still does not many indicators of human's actual well-being such as education, health, distribution of income, the environment. Do you find this valuable? |
