GDP measures output with no regard for the quality of such, therefore rendering its value as a mark of economic welfare substantially flawed. Critically discuss this statement.

ASSIGNMENT TWO

 

1500 word essay

 GDP measures output with no regard for the quality of such, therefore rendering its value as a mark of economic welfare substantially flawed.  Critically discuss this statement.

 

How is GDP is measured – 3 approaches                   What does GDP not take account of?

 

Gini coefficient – Lorenz curve

 

Good and bad output  eg. Accidents increase GDP, prostitution, illegal drugs

 

Environment – Pollution – Working hours or other examples

 

Gross Domestic Income (GDI) – World Bank measure

 

Physical Quality of Life Index (PQLI)

 

How to measure?  How to compare.   Total or per capita

 

EU – beyond GDP

http://ec.europa.eu/environment/beyond_gdp/index_en.html