Tuesday, October 8, 2013
What GDP Lacks.
I believe GDP is not an good indicator of the economy's well being because it is an understatement of other unaccounted essential factors that affect our market. Like it or not, the underground economy is an aspect that alters the market in many nations; the GDP doesn't account for the illegal transactions that occur in the black market. The GDP also avoids the emotional value and moral value of items, for example, the value of education, someone working hard to care for their family or the value in the amount of happiness! Lastly, due to illegal immigration and alien resident the gross domestic product that is counted per capita is most likely incorrect. Despite all these factors I'd also like to mention that having something is better than having nothing, in other words it's better to have flawed GDP information than have none so it's easier to compare our total market value of all final goods and services to other countries.
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I like how you brought up the idea of illegal immigrants and how they affect gross domestic product per capita since it's a severe problem to GDP calculations and it once again serves to show how flawed the GDP is as a measure of an economy's well being.
ReplyDeleteI agree with you, Aesha and I like how you used education as an example of emotion and moral values. Education is something to be proud of and in a country that depends so heavily on knoweledge, education increases the satisfaction and standard of living in almost everyone, provided they get a job using the skills they studied. I agree that per capita GDP is most likely flawed as well. Also, I like how you tried to find the positive in GDP instead of just stating the negatives. It is a helpful resource for our market but like anything, there is always room for improvement.
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