Question

Can I have a short 150 words paragraph about following? Thank you!

Gross Domestic Product was designed as a measure of economic activity, specifically a measure of national production. Despite this intent, GDP is widely interpreted as a measure of economic welfare or standard of living (when measured in per capita terms). What are the shortcomings of using GDP as a measure of economic welfare? What would you like to add to (or subtract from) GDP to make it a better reflection of how well people are doing in a nation?

Answer 1

GDP is used to measure the Economic welfare or standard of living in the people when it is measured per capita terms. The short coming with GDP is that it does not show the true economic welfare or standard living of people in the society as GDP is calculated as whole for whole population prevalipre in the country which includes all level of income people. In any country there will be rich , poor and middle class.

Using GDP for finding social welfare it tells whether the country standard of living is increasing or not but it will not tell specially abpab poor and middle class. Any country standard of living goes up only if the poverty in the country eradicate. Thus GDP have a short coming of not finding the true social welfare or standard of living which is in the society.

There is nothing we can do to find the exact condition of society but government can implement policies to provide a better living for people who are in poverty.