From GDP\u2019s perspective, bigger = better. Is it though?Gross Domestic Product (GDP), the yardstick of success, as most know, is the standard measure of the value added created through production of goods and services in a country for a period of time. In simple terms, it is how much the economy makes and consumes. Because GDP is collected at the current price, one cannot compare two periods without making adjustments for inflation. Thus, economists compute real GDP by using various statistical tools to obtain information about the size of an economy. With that, the growth rate for GDP, more often than not, will be used as a benchmarking tool to reflect on the general health of the economy.GDP came about some time during the second world war, developed by economist Simon Kuznets. According to Kuznets, national income should be the sum of private consumption, investment, and government spending. He argued that government spending should be included along with the economic production by individuals and companies, due to wartime spendings, and it should rise and fall throughout the economic cycle. Because of his method of including government spending into a country\u2019s income, it soon found acceptance around the world and continues to this day.Photo by Kyle Glenn on UnsplashWhile living standards across the globe has been increasing, the standard metric of GDP hardly reflects a nation\u2019s welfare and well-being. Policymakers and economists are fixated on this method as they measure the changes in GDP to gauge whether the average citizen has gotten better or worse off. Quoting Robert Kennedy on this election speech in 1968,\u201cIt (GDP) measures everything in short, except that which makes life worthwhile.\u201dIt is clear to justify where Kennedy came from, as an increase in the production of cars or industrial buildings may cause environmental issues that are\u2026<\/p>","protected":false},"excerpt":{"rendered":"
From GDP\u2019s perspective, bigger = better. Is it though?Gross Domestic Product (GDP), the yardstick of success, as most know, is the standard measure of the value [\u2026]<\/span><\/p>","protected":false},"author":0,"featured_media":2439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/2438"}],"collection":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/comments?post=2438"}],"version-history":[{"count":0,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/posts\/2438\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/media\/2439"}],"wp:attachment":[{"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/media?parent=2438"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/categories?post=2438"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/afluxcoin.com\/zh\/wp-json\/wp\/v2\/tags?post=2438"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}