Tuesday, October 15, 2013
Is GDP an Accurate Measure of our Nation's Economy?
Some people might think that the Gross Domestic Product (GDP) is not an accurate measure of the United States' economic well-being since it doesn't take into account leisure time, underground economy (illegal transactions), happiness, and others. However, I still think the GDP is a good interpretation of the economy. Those factors left out, should be left out since they aren't qualities easily tracked and measured. Obviously, the government won't know too much about the underground economy, otherwise it wouldn't be there, and how is one supposed to measure happiness? I believe adding consumer expenditures, investments, government purchases, and net exports is the best way to evaluate our nation's economy.
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I agree with kari. Trying to include happiness and the underground market is just to hard of a category to put a monetary measure on and track consistently and accurately. With how often people change their minds about a simple good racking happiness could be nearly impossible. As far as the black market goes, it's called the underground market because the government has no control over it and has no records or data of it. We don't want to include something that we don't know anything about.
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