Mnementh on 09 December 2007
| Kyros said: "So the simplest way to increase the GDP in a great way is inflation." Because of this GDP will often be given in PPP or purchasing power parity. Or in other words how much you can buy with your money. PPP GDP for developing countries is larger than nominal GDP but it doesn't change much. Nominal GDP is important because it tells you how many goods you can buy from other countries. In our increasingly globalized world the difference between nominal and PPP GDP should get smaller over time. "So, a good economy alone doesn't make our life better." Not alone but a good economy is the necessary foundation to care about other things. If you have nothing to eat you won't care about the environment either. Only our capitalism-created efficiency at doing basic things like growing food/building houses etc. has freed up enough people to go into medical care, research new technology like air filters etc. |
I know, the corrected GDP may be better, but it's not perfect either. As I said, red cross produces values, but that doesn't count in the GDP. And because of completely new products and changing price structure it's hard to measure the inflation and how it affects real life. And growing economy may be a base for better life, but it's never good enough. Here in germany economy (measured by GDP) was growing recently and unemployment decreased ... but poverty has increased.
