The Ugly Truth about GDP and Economic Factors : WAKE UP TO REALITY

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What’s GDP all about?

GDP is considered as a tool to measure the country’s economic well-being which is determined by the market value of all the goods and services produced within a country and it has been used since 1934. But in today’s scenario, we would argue as such measures are far too narrow to gauge the overall progress and health of a nation, and that’s a major issue for other countries as well.

 

MEASURE OF WELL-BEING NEEDS TO REPLACE GDP AS  MEASURE OF A COUNTRY’S PROGRESS

 

GDP indicates our economic progress and considers financial facts the benefits from trade agreements, increase in net exports, the greater production they all are quantitative factors but what about qualitative and other factors which should have been considered if it is about country’s well-being in all aspects.

  

Since the institution of GDP figures and country rankings, other measures of the quality of life have appeared. For example, The Organization for Economic Cooperation and Development (OECD) annually issues a report based on a study of 140 countries, indicating the levels of happiness in those countries. For at least the last decade, European countries such as Denmark, Finland, and the Netherlands and other countries such as Canada, Australia, and New Zealand have ranked at the top and the U.S. has not made the top 10.

 

In India, The life of an average worker who is devoting his entire life to working hard, is he doing for a payment? there’s something beyond those basic necessities to support life, the following things like good human relations, optimistic frame of mindset, supportive attitude, being engaged in some productive work and taking its responsibility that GDP doesn’t count.

 

The economic value of output is not a complete base to indicate country’s growth and prosperity.In India GDP was never designed to measure national well-being. “Useful measures of progress and well-being must be measures of the degree to which society’s goals human needs of food, shelter, freedom, participation, trust are met, rather than measures of the volume of market economic activity, which is only one means to that end.”

As India is a developing country money is our purchasing power , for an average worker he is working to survive and for earning livelihood he is aware of the fact that his contribution to the country’s GDP will be resulting in more income , and one step closer to fulfill his desire to shift from basic product to some luxurious product, his behaviour towards the job will be “earn to spend ” only.

 

What about satisfaction and happiness?

An Average person’s happiness is determined by a combination of individual wealth, possessions, and optimism. The led author of the study, Edward Diener, concluded “We’ve found that rising income does lead to rising happiness, but it depends on people being optimistic, not having sky-high desires, and the average person is actually able to afford more things. So income is helpful, but only in certain circumstances.”

We would do well to remember Mahatma Gandhi’s observation about the roots of conflict and violence within a nation are “wealth without work, pleasure without conscience, knowledge without character, commerce without morality, science without humanity, worship without sacrifice, and politics without principle.  “

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