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TOPIC 10GDP: An outdated measurement standardGDP is a measure of the myths cause when used to assess the success of a country. So, it's time to look for applying the measure of the other.GDP index is formed from the 1930s-1940s, in the context of the turmoil of the great depression and world war. GDP primarily reviews the transaction market that ignores the social loss, the impact on the environment, and that inequality in income. However, since the end of World War II, boosting GDP growth indicators remain a major target in the national policy of most countries.A lot of testing was taking place, the introduction of new metering standard alternative to GDP helped to evaluate the evolution of society.The limitations of the standard measure of GDPWhen the standard measure of GDP is set to seven decades, it was viewed as a logical index to evaluate the growth by at the time, the increase in economic activities, is considered to be the main cause of offering jobs.But, the world today has a far cry from the world of global leaders met together to discuss the post-war economy in 1944 at Bretton Woods, New Hampshire.More than 200 years ago, the philosopher John Stuart Mill pointed out that, after securing a suitable standard of living, people need to pursue progress on social, moral and entertaining, rather than wrestle fight these material possessions.The limitations of the standard measure of GDP has become clear. Criminal rate rise does not help to improve life for the people, but they can increase GDP indicators by pushing high the cost of investing in the security system. Even though the oil spill of the offshore drilling rig Deepwater Horizon in 2010 and 2012 year Sandy storm has caused serious damage, but both events on all contribute to improving America's GDP PER CAPITA indicators because they promote rebuilding.The standard replacementCan be divided into the standard alternative development into three groups as follows:The revised standard economic measure. This measurement standards is expressed in the form of the single currency, so it can be easily compared to the GDP than the index. These are indicators of annual income, savings, and the amount of assets; In addition, the losses as well as environmental benefits can also be counted on. An example of this measurement standard is authentic development index (GPI). The GPI is calculated by taking the amount of personal information (which is a standard measure of personal spending and is a major component of the GDP indicator), and then bring the plus minus with over 20 different factors, such as the value of the voluntary job losses, divorce, crimeand, environmental pollution and. ..Other than the standard gauge of, the GPI is the impact caused by the level of income inequality. A dollar increase in the collection of a poor person will be taken more seriously than a dollar of income in addition to a rich person. Income inequality is a problem to be concerned today, by the disparity of rich-poor in a country, visible as in the us, China, India, often associated with the social unrest.In the past 3 years, the two of us are Vermont and Maryland has used GPI as standard measure of development, and they have implemented many specific policies to improve the index.
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