The Usefulness of GCP as a Measure of Living Standards Compared to Other Methods
One of the main uses of national income data is in measuring the
economic well being of the population through the concept of the
standard of living. The basic standard for this is to use GDP per
person (per capita). But GDP per capita does have some limitations
when assessing the standard of living.
Firstly GDPdoes not take into account for the natural inflation; if
inflation is not taken out of the equation then the GDPwill
overestimate the living standards of a countries population. This is
the case because for example if a piece of machinery breaks down after
use and a company buys a new one, inflation would have increased the
price. So using GDPthis would view this as an increase in the standard
of living for the population which quite obviously is not the case. A
better way to measure living standards would be to use real GDPwhich
removes the factor of inflation and so give out a more realistic
figure.
Also GDPfigures on their own do not show the distribution of income
and the uneven spread of financial wealth but show an average. Incomes
and earnings may be very unequally distributed among the population
and rising national prosperity can still be accompanied by rising
relative poverty. So by using GDPyou may be hiding the differing
extremes in a country.
There are certain things that are difficult to measure using any
statistical approach to living standards; these are also not reflected
in GDPstatistic. The GDPdoes not take into account social problems in
the community, and even though the statistics may be showing an
increase in in...
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...econdary, and tertiary enrollments), and living
standard (measured by GDPper capita in purchasing power parity terms.
In this way, you still are provided with a single number for easy
comparison between countries but include more information than simple
GDPper capita.
I have attempted to show that GDPis problematic as a measure of living
standards. Ultimately, using GDPas a measure for living standards
because GDPisa potential means to living standards and is not an end
in itself. Therefore, it makes sense to examine living standards by
composite measures of the ends themselves: life expectancy, infant
mortality rates, literacy, education, happiness rates, etc.
Specifically, alternative development indicators such as the HDIor the
GPIare steps toward a more accurate and balanced approach to measuring
development.
Indicators. United Nations, 7 July 2011. Web. 16 Nov. 2011. This data sheet shows the
Both nations are considered under developed and in relative poverty, but the founding differences that have expanded over time has them on separate sides of the disparity of poverty. The data we have access to has given us some light into seeing how the policies enacted after the American occupation is one of the main contributing factors as to why there is such a vast difference in each nation
An article published in Issues in Science and Technology, stated that thirty-two percent of individuals in the United States are living below the poverty threshold. A study conducted in Living Below the Poverty Line, found that forty five percent of individuals and or families obtain income that is not substantial enough to meet basic needs of the individual and or family. In this same study it was founded that of these individuals thirty nine percent of these individuals were adults but fifty five of these individuals living above the poverty threshold were children.
The most widely used poverty measures of Foster-Greer- Thorbecke (FGT) do not show when poverty might be eliminated. But, in this section we will try to answer for the question how long are they going to stay in poverty? following Morduch, (1998) approach which is based on Watts poverty index and FGT class of poverty measures. Morduch shows that a simple linear transformation of the Watts index gives it cardinal properties that can be useful as well.
Understanding Gross Domestic product is central for understanding the business cycle and the progression of long-run economic growth (Hubbard & O’Brien, 2011, p. 631). The GDP is defined as the value-added of all goods and services produced in a given period of time within the United States (2008). The GDP is widely used as an gauge economic wellness and health of the country. What the GDP represents has a hefty impact on nearly everyone within our economy. As an example, when the economy is healthy, you will usually see wage increases and low unemployment as businesses demand labor to meet the increasing economy. The government has two types of economic policies used to control and maintain a healthy economy, fiscal policy and monetary policy. When economic growth is healthy it will have a positive on both individuals and businesses.
Poverty in the United States is one of many difficult problems handled today. In 2010, 15.1% of the American population was living below the poverty threshold. But, how did the government calculate the poverty rate? The United States government uses the Orshansky poverty thresholds, which uses family budgets to determine if the family is above or below the poverty threshold. The current United States poverty measure is an absolute, headcount measure using family income as its scale of resources. However, many would agree that the poverty measure is flawed and that the poverty measure overstates how many people are really in poverty. This is a problem because resources government programs uses to help the poor can unevenly distribute. Therefore, I would like to propose a different poverty measure. In this paper, I would like to argue for a poverty intensity measure that is relative, with earnings capacity as the scale of resources and counts the household as the unit of analysis. First, I will discuss more about the flawed U.S. poverty measure; second, I will explain the four components necessary for poverty measures; third, I will make my proposal against the current measure and conclude about the two poverty measures.
Inside any type of community there are many indicators of health, but now I am going to focus only in five of them. The proper good health of communities it is a very strong matter for governments and society in general. This indicators are important because gives us objectives, data, and resources to guide us in what are the mains community problems when we talk about health. The five indicators that I am going to discuss are: access to health services, physical activities, nutrition and weight status, sexual transmitted diseases, and immunization and infectious diseases. The government program that control and give us all this information is Healthy People 2020.
Every year there is a ‘league table‘ published showing the level of economic growth achieved by each country. The comparison is made using each countries Gross Domestic Product, or GDP. An important factor to look at is the difference between actual and potential economic growth. Actual economic growth increases in real GDP. This increase can occur as result of using previously unemployed resources, or reallocating resources into more productive areas or improving existing resources. Whereas potential economic growth is the productive capacity of the economy. For example, it can be shown by the predicted ability of the country to produce goods and services. This changes when there is an increase in the quantity or quality of the resources. All countries have different ways of achieving this with the resources they have available to them. For this reason it party answers the question of why some countries are richer than others. It is widely thought that the productive capacity of an economy will increase each year largely due to improvements in education and technology. This will obviously differ from country to country. For example, in the UK the quality of fertilizer could be improved, hence forth increase the years fruit and vegetable output.
The Human Development Index rates each country with a score between 0 and 1, with 1 being the most advanced, globalized country. Factors that are involved in determining a country's HDI are gross domestic production per capita, life expectancy at birth, adult literacy, and the number of persons enrolled in educational institutions. In 1975, Peru's Human Development Index was 0.643. By 2003, the Human Development Index had risen more than one tenth to 0.762. The substantial increase in Peru's HDI is a clear indication that globalization has made a positive impact.
It is characterized as the level of health of a individual, gathering, or country. We can quantify the status from numerous points of view. Approaches to quantify consist of using physiological, physiological, psychosocial measures, mortality, death rates, and handicap rates.
By using Gross Domestic Product as the main indicator of well-being, many important factors are neglected. As defined in the New Merriam-Webster Dictionary, well-being is the state of being happy, healthy, or prosperous (1989, p.831). Economically, perhaps the only relevant state under the definition is prosperity, but in reality happiness and health have a great impact on well-being, significant enough to be recognized even when focusing mainly on wealth in numbers. If society hopes to have a more accurate and complete indication of well-being, globally or nationally, a new system of measurement must be developed, leaving GDP to its original function of totaling the dollar value of all domestically-produced goods and services sold over a period of time.
GDP measures the total value of all goods and services produced within that territory during a specified period. GDP is used to measure a country’s wealth. Basic’s of life, food, etc. shelter and clothing is not likely available to most people in poorer countries. The.
The fact that it has been developed and used by the United Nations is significant. The syll It can be deduced that although social and economic indicators do have their relative merits, they have many weaknesses. Generally, it can be said that economic indicators measures the wealth of the country but gives little indication of the standard of living of the majority of people. The World Bank classifies GNP as an economic indicator of development but stresses that. Classification by income does not necessarily reflect development.
a can coke was $1 in 2000, due to an increase in wage demands, costs
In order for any country to survive in comparison to another developed country they must be able to grow and sustain a healthy and flourishing economy. This paper is designed to give a detailed insight of economic growth and the sectors that influence economic growth. Economic growth in a country is essential to the reduction of poverty, without such reduction; poverty would continue to increase therefore economic growth is inevitable. Through economic growth, it is also an aid in the reduction of the unemployment rate and it also helps to reduce the budget deficit of the government. Economic growth can also encourage better living standards for all it is citizens because with economic growth there are improvements in the public sectors, educational and healthcare facilities. Through economic growth social spending can also be increased without an increase of taxes.