Gdp Is The Highest Priority Upon The Pursuit Of Economic Growth? Essay

Gdp Is The Highest Priority Upon The Pursuit Of Economic Growth? Essay

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What is GDP? Should society continue to place the highest priority upon the pursuit of economic growth?
This essay will define what the Gross Domestic Product (GDP) or Gross National Product (GNP) is and how the circular flow chart is dependent on an equal flow in and out of the economy. The thesis for the essay is that society should not place the highest priority upon the pursuit of economic growth; this will be supported with evidence. It will also briefly argue the opponents side on why GDP should be the highest priority.

GDP is the "sum of the market values, or prices, of all final good and services produced in an economy" (SparkNote Editors, n.d.) within a country. GDP is calculated yearly or quarterly and determines the output a country produces. The GDP is in the country 's "local currency" (SparkNote Editors, n.d.). GDP is a flow that measures the quantity of a produce in a year. The cost of production is valued by "what buyers pay for it" (Beljac, 2015a) or aggregate expenditure and "what it costs producers to make" (Beljac, 2015a). According to Beljac (2015a) one is able to determine if a country is in recession if the GDP is decreasing however if the GDP is decreasing in larger amounts it is classified as a depression. Beljac states that a growing economy is when the GDP slowly increases however is an economy is growing at "amount greater than its average or for a longer time period than its average or both" (2015a) it is booming and there is a risk of it suddenly decreasing. The formula to calculate a country 's GDP is; the consumption (C) + investments (I) + government spending (G) + net exports (X - M), therefore GPD=C+I+G+(X-M) (Bel...


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...low and stop growth" (2004). Due to over shooting the Earth is unable to "absorb or render" (Meadows et al, 2004) wastes and pollutants harmless. Therefore if society highest priority is economic growth, there will be a higher demand for products which in turn puts a higher strain onto the environment and possibly have a "massive environmental decline" (Speth, 2012) which cannot be fixed.

In conclusion, while society can currently benefit from putting economic growth as a top priority, it cannot last. Resources are being used faster than they are able to be replenished; some of the resources are a non-renewable resource. High levels of pollution and waste is also being dumped into the Earth, therefore the environment is being destroyed as it cannot be absorbed. Therefore society should not continue to place the highest priority upon the pursuit of economic growth.

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