Question:GDP has proved useful in tracking both short-term fluctuations
and long-run growth. Which isn’t to say...
Question
GDP has proved useful in tracking both short-term fluctuations
and long-run growth. Which isn’t to say...
GDP has proved useful in tracking both short-term fluctuations
and long-run growth. Which isn’t to say GDP doesn’t miss some
things. Amartya Sen, at Harvard, helped create the United Nations’
Human Development Index, which combines health and education data
with per capita GDP to give a better measure of the wealth of
nations. Joseph Stiglitz, at Columbia, advocates a “green net
national product” that takes into account the depletion of natural
resources. Others want to include happiness in the measure. These
alternative benchmarks have merit but can they be measured with
anything like the frequency, reliability, and impartiality of
GDP?”
Explain the factors that the news clip identifies as limiting
the usefulness of GDP as a measure of economic welfare.
What are the challenges involved in trying to incorporate
measurements of those factors in an effort to better measure
economic welfare?