The article clearly shows the inaccuracies of GDP and how it does not give a clear indication as to how well and economy is doing as a high GDP does not always mean that the economy is performing well. An example of this would be comparing America and Norway. Although America has a GDP probably several 100 times larger than Norway but it is fair to say that the average living standards are probably better in Norway than America so would this suggest better economics performance. Once again it is very difficult to compare countries with this number as it does not take into consideration many things like living standards, the environment and other aspects of a country. In my opinion the reason why governments put so much emphasis on this number is because it is an easy tool to express people how they think the economy it is used almost like a punchline is, quick, easy and straight to the point even though to the point isn't a very accurate term though it still has a great effect on peoples views on the economy and could effect how they view the governments. People also don't want to be given a set of numbers showing different economic indicators and would prefer to be given a simple summary and GDP is as close as we can get to a summary.
In my opinion GDP is not a good way to measure an economies economic performance as focusing on this number can not only supply an obscured view of the economy but it can encourage governments to invest huge amounts on expensive projects that are useless to boost GDP in order to seem more productive to make them seem like a competent government.
In the entire article there is nothing about what I think is the most important aspect of a country and that is the peoples happiness. This in my opinion the very reason why economies push to grow and this is what should be measured in order to measure economic performance. The only reason why most people work is to increase their happiness not to increase GDP or to keep prices stable of to keep a relatively low rate of inflation or to reduce employment. We are viewing out economy as a set of numbers to make the most goods and most money but the underlying reason why anyone works is to increase their happiness and if people are happy in an economy it must be working efficiently. An economy may have a huge output with stable prices, no unemployment with low inflation rates and high competitiveness but may only be producing rubber bands and ruining the environment and people are earning near to nothing and are only able to afford the countries only output being rubber bands despite the fact that they have achieved almost all the economic goals they have not done the only thing that the economy has ever aimed to do which is to increase the peoples happiness. Although happiness is a very hard thing to measure it is still the fundamental goal of every person that works in an economy. It could even be more accurate than GDP as you could have a survey where people are asked weather they are happy with their economic status, their environment, the quality and availability of goods in the economy and so on. Although this cannot be used as a way to evaluate what aspects of an economy need to be fixed and all the other economic indicators are still necessary in my opinion happiness levels should be the overall measure of how well an economy is performing.
In my opinion GDP is not a good way to measure an economies economic performance as focusing on this number can not only supply an obscured view of the economy but it can encourage governments to invest huge amounts on expensive projects that are useless to boost GDP in order to seem more productive to make them seem like a competent government.
In the entire article there is nothing about what I think is the most important aspect of a country and that is the peoples happiness. This in my opinion the very reason why economies push to grow and this is what should be measured in order to measure economic performance. The only reason why most people work is to increase their happiness not to increase GDP or to keep prices stable of to keep a relatively low rate of inflation or to reduce employment. We are viewing out economy as a set of numbers to make the most goods and most money but the underlying reason why anyone works is to increase their happiness and if people are happy in an economy it must be working efficiently. An economy may have a huge output with stable prices, no unemployment with low inflation rates and high competitiveness but may only be producing rubber bands and ruining the environment and people are earning near to nothing and are only able to afford the countries only output being rubber bands despite the fact that they have achieved almost all the economic goals they have not done the only thing that the economy has ever aimed to do which is to increase the peoples happiness. Although happiness is a very hard thing to measure it is still the fundamental goal of every person that works in an economy. It could even be more accurate than GDP as you could have a survey where people are asked weather they are happy with their economic status, their environment, the quality and availability of goods in the economy and so on. Although this cannot be used as a way to evaluate what aspects of an economy need to be fixed and all the other economic indicators are still necessary in my opinion happiness levels should be the overall measure of how well an economy is performing.
Here are some interesting comparisons to give you the idea of how big the American economy is.
You can buy 10.45 trillion cendols which is enough to cover 0.42% of the surface of the moon.
You can buy 10.45 trillion cendols which is enough to cover 0.42% of the surface of the moon.
If you lined up 15.7 trillion dollar bills end to end you could reach Jupiter
A death star would cost 852 quadrillion dollars so it would take America 54336 years to pay for the construction of the death star if they used all their GDP on the death star.