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 349 days ago|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.
17,179,784 questions answered
Popular Conversations
The political party notifies the people about certain issues, and in ...
Weegy: C. informer-stimulator function is the answer User: Which of the following if NOT a function served by ...
8/29/2014 11:19:03 PM| 3 Answers
The meaning of analysis is A. to dissect. B. absence of ...
Weegy: The meaning of analysis is : a separating into parts. User: A dog lying on its right side is in _______ ...
8/29/2014 11:32:49 PM| 3 Answers
What is passive listening
Weegy: ]
8/29/2014 9:51:30 AM| 2 Answers
The climate and terrain near the Black Sea in Georgia are well suited ...
Weegy: kindly include the choices. thanks!
8/29/2014 10:58:23 AM| 2 Answers
Factor -2bk 2 + 6bk - 2b
Weegy: 2b - 3 = 5. please rate this answer. User: (6x 2 - x - 40) ÷ (5 + 2x) Weegy: The simpified equation is (B) ...
8/29/2014 11:08:33 AM| 2 Answers
Weegy Stuff
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
P
C
Points 2618 [Total 24218]| Ratings 4| Comments 2578| Invitations 0|Offline
S
L
1
L
Points 2362 [Total 6338]| Ratings 8| Comments 2282| Invitations 0|Offline
S
L
C
P
C
1
L
L
Points 2239 [Total 15853]| Ratings 13| Comments 2109| Invitations 0|Offline
S
L
P
C
L
P
C
P
C
L
P
C
P
C
P
C
Points 2076 [Total 17103]| Ratings 7| Comments 2006| Invitations 0|Offline
S
L
1
1
1
1
L
1
Points 1927 [Total 9634]| Ratings 2| Comments 1907| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
P
C
Points 900 [Total 18471]| Ratings 0| Comments 900| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 563 [Total 11224]| Ratings 1| Comments 553| Invitations 0|Offline
S
1
L
L
Points 558 [Total 5122]| Ratings 0| Comments 558| Invitations 0|Offline
S
Points 442 [Total 645]| Ratings 1| Comments 432| Invitations 0|Offline
S
Points 369 [Total 369]| Ratings 2| Comments 319| Invitations 3|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.