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|
andrewgedwards |
40. RE: Is GDP really a good measure of well-being?
Oct 23 2008, 12:07 PM EDT
Although GDP doesn't take into account Individuals well being, education, health, distribution of income, the environment, crime rates etc it does show the economic 'well-being' of a certain country. It isnt meant to show the well being of a cetrain individual but rather the well being of a whole nation. If the nation is doing well most people usually are doing well so it doesnt necessarily need to take into account Individuals well being.
Do you find this valuable?
|
|
kevinbraunschweig |
41. RE: Is GDP really a good measure of well-being?
Oct 23 2008, 1:28 PM EDT
GDP is obviously not some kind of super number that can tell you everything about how a nation is doing. However it does look at the nation from an economic point of view. It considers how much a nation is producing and trends for the future economy of the nation. This is key for economics. It is a useful number for economist to use. GDP can be used most effectively when wanting to see the difference of the same nation over time.
Do you find this valuable?
|
JonathanRanstrand |
42. RE: Is GDP really a good measure of well-being?
Nov 2 2008, 3:33 PM EST
No - GDP is meant solely to measure the total "size" of the economy, if you will. It can tell you about trends within the economy, such as growth. For instance, the US GDP just shrunk 0.3% in this last quarter, which means that the total value of all the goods and services produced in the US declined by 0.3%. Even though GDP is intended to measure economic growth and so on, we must recognize that these trends can then, in turn, have an impact on well-being. A growth in GDP, even if it might be skewed toward one industry or sector, would be beneficial to the whole economy and the country as a whole, since it could lead to the creation of new jobs, more investment, and so on. That being said, if we want to consider well-being on a more individual level, we can instead consider statistics such as HDI, Human Development Index, which is specifically created to measure well-being, taking into social factors, healthcare, education, etc.
Do you find this valuable?
|
|
miguelcccsilva |
43. RE: Is GDP really a good measure of well-being?
Nov 3 2008, 7:29 AM EST
GDP does not measure the well being of the people in the country, but it does measure how many goods and services a country is producing and consuming. This can also measure economic growth, if a country's GDP increases or decreases during a period of time. To measure the well being of people in a country, you should look into economic development, as people's happiness have nothing to do with how much a country produces. In economic development, one should look far beyond just GDP. You should look into how the health care in the country is, education, wealth distribution and human development index.
Do you find this valuable?
|
|
alexboedtker |
44. RE: Is GDP really a good measure of well-being?
Dec 17 2008, 4:14 PM EST
GDP isn't meant to measure if people are happy or not it was made to measure how well an economy is doing. If you compare GDP to grades in school, a kid might be getting straight As and not be happy just as a country with a GDP of 17 trillion could have the most unhappy people but that isn't what GDP is supposed to show it is supposed to tell the progress of the country just as grades show the understanding of a student. Do you find this valuable? |
|
MMarwitz |
45. RE: Is GDP really a good measure of well-being?
Dec 19 2008, 7:03 AM EST
India, has 1 billion people, its GDP will be very high. This does not mean people in India have a good standard of living, or are well off. A much better indication of well-being is GDP per capita. This indicates on average how much each person is producing. Countries like switzerland might have a low GDP but an extremely high GDP per capita.
Do you find this valuable?
|
|
MMarwitz |
46. RE: Is GDP really a good measure of well-being?
Dec 19 2008, 7:03 AM EST
India, has 1 billion people, its GDP will be very high. This does not mean people in India have a good standard of living, or are well off. A much better indication of well-being is GDP per capita. This indicates on average how much each person is producing. Countries like switzerland might have a low GDP but an extremely high GDP per capita.
Do you find this valuable?
|
