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...
... middle of paper ...
...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.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Within nature things grow in size only to a certain point, look at the growth of a hamster, the weight of a hamster doubles each week from its birth until it reaches puberty. If this progress of growth continued after it matured, until it was 1 year old in age, we would be faced with a nine billion tonne hamster. Nature and its ecological systems grow and develop to a certain extent, yet economists and politicians believe the economy can have limitless growth. This is a fantasy. It is impossible to have limitless growth on a finite planet.... [tags: environmental science, economy]
1804 words (5.2 pages)
- 1. Economists use real GDP per capita to measure economic growth: A) because it ignores the effect of price changes. B) because poor nations have a large population and the population of richer nations is declining. C) because it is the inflation-adjusted value of a country 's production of goods and services corrected for the change in a country 's population. D) even though nominal GNP per capita is a far superior measure of economic growth. Use the following to answer questions 2-5: Scenario: Growth Rates Suppose that real GDP per capita of the United States is $32,000 and its growth rate is 2% per year.... [tags: Economic growth, Economics]
1152 words (3.3 pages)
- I have attached six growth-regression tables (table 3, 4, 5, 6, 7) in appendix. In table 3, aid is measured, as a ratio of GDP and aid is addressed through “ODA net”. At first, I have not controlled for any other variables and just detected the relationship between aid and growth. The relationship between ODA/GDP and GDP per capita growth is positive, though it is not significant. In the second step, I have included initial GDP per capita, savings and population growth as prescribed in Solow growth model.... [tags: Economic growth, Gross domestic product]
705 words (2 pages)
- 1) What is the annual US GDP growth rate over the past 10-year period (2004-2014). Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 GDP Growth Rate 3.8% 3.3% 2.7% 1.8% (0.3)% (2.8)% 2.5% 1.6% 2.3% 2.2% 2.4% The GDP Growth in these 10 years as CAGR has been 3.7% and GDP growth dollars is 5.431 Trillion USD 2) What is the inflation rate over the past 10-year period (2004-2014). Explain the inflation rate. Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 AVE % Inflation 2.68% 3.39% 3.24% 2.85% 3.85% (0.34)% 1.64% 3.16% 2.07% 1.47% 1.62% The formula for calculating the Inflation Rate using the Consumer Price Index (CPI) is relatively simple.... [tags: Stock market, Market capitalization, Inflation]
1155 words (3.3 pages)
- ... The model shows that during times of economic recession, a $1 billion investment in non transfer payments actually decreases per capita GDP by $12.88. The negative relationship still holds during times of economic expansion: a $1 billion investment in non transfer payments leads to a decrease in per capita GDP of $10.17. If we combine these results and the fact that we found that transfer payments have no statistical significance, we can infer that an expansionary fiscal policy in times of economic recession has a negligible impact on GDP growth.... [tags: value of monetary and fiscal policy]
1108 words (3.2 pages)
- ... During the period of 2003, the inflows of (FDI) into Malaysia has decline with rate of 2.24. Before the year of 2003, the (FDI) recorded as much as 3.18.However, the rate increasing again with 3.71 in period of 2004, but it decline again in 2005 with rate of 2.73. However, the highest rate recorded on 2006 with rate of 4.73. After the 11th September incidence, the inflows of the FDI in Malaysia became volatile as mentioned above from the year of 2003 to 2006. Then, the next inflows also showed the volatility of the inflows in the foreign direct investment in Malaysia as stated above with 2007 (4.69), 2008 (3.28), 2009 (0.06) and 2010(3.71).... [tags: good, services, gdp, cameron]
2373 words (6.8 pages)
- Economic growth is defined as an increase in the output that an economy produces over a period of time, the minimum being two consecutive quarters. It is an increase in what an economy can produce if it is using all its scarce resources and at its full potential. An increase in an economy’s productive potential can be shown by an outward shift in the economy’s production possibility frontier (PPF). It is conventionally measured as the percent rate of increase in real gross domestic product (GDP) .... [tags: Economic growth, Gross domestic product]
1072 words (3.1 pages)
- The purpose of this paper is to examine how increasing consumption, as a ratio of GDP (C/Y), in a series of steps spread over a number of years, increases China’s real GDP in a series of short-run steps. As Krugman (1994) suggests, increases in the economic growth rate in the steady state can only be attained by technological progress. However, the focus of this paper is different. Instead of focusing on China’s economic growth in the traditional sense of steady state per capita, this paper investigates the rebalancing of China’s economic structure away from investment and exports, and towards consumption over a long period of time by creating and stimulating a simple macroeconometric model... [tags: Economic growth, Economics, Unemployment]
967 words (2.8 pages)
- An Analysis of Gross Domestic Product (GDP) The current state of the economy in the United States has been slow in recent months. While the economy is not currently in a recession, we may eventually fall victim to the first recession we’ve had in nearly ten years. The economy in general is showing growth, just not much. It will be difficult to predict what exactly will happen to the US economy in the future. Many economists do not agree on what will become of the economy. Some feel that we will begin a recession over the next year, and some feel that there is significant policy implementation that will allow us to dodge a recession and regain our economic strength.... [tags: GDP Economy Economics essays papers]
1871 words (5.3 pages)
- Philip Slater’s The Pursuit of Loneliness The purpose of Philip Slater’s book The Pursuit of Loneliness is to “reach some understanding of the forces which are unraveling our society” for his readers (xxii). It is a common conception that America is the best country, an idea which is substantiated by economic figures. However, Americans are not happy. According to Slater, “all societies frustrate certain human needs and satiate others (because) humanity and any particular society’s idea of what humanity should be is never very exact” (2).... [tags: Philip Slater Pursuit Loneliness Essays]
1053 words (3 pages)