Question and answer
Identify three criticisms of GDP as a measure of economic activity. Do you agree with these criticisms? Why or why not?
Criticism of the GDP: 1. Everything that can be sold and has an aggregate monetary value will increase the GDP and growth, which not necessarily means sustainable development and increased individual and collective well-being. [ The GDP positively records all forms of evil and destruction, such as increase in the number of accidents, progression of illnesses stemming from food insecurity,
pollution… (which, to be offset, requires defensive expenditures) the same way it accounts for common well-being resources (education and participation in cultural and leisure activities in a society where people are healthy, for instance). In other words, the two societies would have the same increase in the GDP, once the GDP computes all resources as increase in GDP, regardless of their purpose. It would be necessary to suppress the GDP increase of the first hypothetical society to better assess the actual creation of wealth (the one that contributes to well-being). The same idea can be applied to expenses on repairing environmental damage caused by human activities: pollution, depletion of natural resources, which lead to decreased well-being. 2. Well-being losses caused by economic growth are not measured anywhere. Despite having no commercial value, they may have a huge value for our well-being and that of future generations. The destruction, for instance, of the Amazon Forest is an activity that makes the world GDP increase (value of the timber harvested and the tractor to cut it down, etc.). The resulting loss of natural capital, its effects on the climate, biodiversity, and the long-term needs of future generations are not measured anywhere. In other words, the GDP does not deduct the losses of natural capital, but makes additions to account for its organized destruction. Besides these examples in which well-being losses are not recorded, there are others in which gains – or essential contributions to well-being – are disregarded, including the following: 3. Many activities and resources that contribute to the well-being are unaccounted for, simply because they are not commercial or because they have no direct monetary production costs. ]
Expert answered|matahari|Points 2499|
Question
Asked 9/14/2013 3:33:31 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
21,134,624 questions answered
Popular Conversations
The amount of space that a gas takes up is ...
5/29/2015 7:55:05 AM| 2 Answers
Find the product. (n + 8)(n - 2) User: Divide x4 + 7 by x - 3. ...
Weegy: 2(3y - 7) - 5y(2 - y) = 6y - 14 - 10y + 5y^2 = 5y^2 - 4y - 14 User: Choose the product. -7p3(4p2 + 3p - 1) ...
5/29/2015 11:17:59 AM| 2 Answers
animist User: Which of the following is not usually an important ...
Weegy: The following is not usually an important factor in the site and growth of cities: prevailing wind direction. ...
5/29/2015 4:23:41 PM| 2 Answers
simplify the following expression (x^4)^3 User: simplify 8(4x + 6)
Weegy: 8(4x + 6) = 32x + 48 User: Select the different (4x^2-5x^3)-(2x^2-9x^3)
5/29/2015 8:06:48 PM| 2 Answers
Weegy Stuff
S
Points 820 [Total 828]| Ratings 2| Comments 800| Invitations 0|Offline
S
L
Points 749 [Total 1279]| Ratings 2| Comments 729| Invitations 0|Offline
S
1
L
Points 623 [Total 1015]| Ratings 3| Comments 593| Invitations 0|Offline
S
L
P
Points 493 [Total 2970]| Ratings 1| Comments 483| Invitations 0|Online
S
P
C
L
P
L
1
P
P
1
P
1
Points 255 [Total 9001]| Ratings 0| Comments 255| Invitations 0|Offline
S
Points 231 [Total 251]| Ratings 0| Comments 231| Invitations 0|Offline
S
1
L
L
Points 84 [Total 8267]| Ratings 0| Comments 84| Invitations 0|Offline
S
L
1
R
Points 80 [Total 1367]| Ratings 0| Comments 80| Invitations 0|Offline
S
L
Points 56 [Total 3810]| Ratings 2| Comments 36| Invitations 0|Offline
S
Points 14 [Total 14]| Ratings 0| Comments 14| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.