Gdp Is Not a Poor Measure of Standard of Living

Topics: Inflation, Economic growth, Gross domestic product Pages: 5 (1489 words) Published: May 16, 2013
Comparison of GDP among country and living standard
GDP per person is measured frequently that most countries provide information on GDP allowing comparing with other countries. It is measured on a consistent basis that the technical definition of GDP is relatively consistent among countries. When compared to other countries with GDP per capita, GDP per capita as well as abroad is almost always higher, therefore, rich countries and the poor have very different rate of GDP per person. If large GDP leads to a higher standard of living, then the GDP will have to comply with very closely related to various measures if the quality of life this is because of it is a measure of the amount of work done, and productivity go to and resulting from the work. With the result we found that the high GDP, the better the quality of life. GDP per capita shows not only convergence GDP in lifestyle, income and other characteristics that are found in developed countries with high GDP numbers. It also takes into account the population growth rate. Real GDP per person is used to compare the standard of living among countries for several years. Real GDP per person tells the value of goods and services that the average person can enjoy. Remove any influence of rising prices and increased cost of living may be in comparison with GDP.

Country in Year 2010ChinaUnited State
Real GDP (billions)$13,882$ 16,041
Population (millions)1348.8310.2
Real GDP per person$10,247$ 51,702

Comparing real GDP per person among country and we summarizes the calculation of 2 countries for China and United States: In year 2010, real GDP was $13,882billion and the population was 1348.8 million. Dividing $13,882 by 1348.8 million, we arrive at $10,247 as the value of real GDP per person in China. Doing the similar calculation for United State and we will get real GDP per person of $ 51,702.China's population is more larger than the United States reflect the incomes that can potentially-purpose, standard of living which might enhance with the analysis GDP per person. Year(United State)19702010

Real GDP (billions)$ 3,458$ 16,041
Population (millions)198.7310.2
Real GDP per person$ 17,536$ 51,702

Real GDP per person in 2010 is 2.95 times its 1970 level that is $ 51,702/$ 17,536 = 2.95. Real GDP per person from 1970 to 2010 shows the entire 40 years and real GDP per person has increased and that it tripled in 40 years from 1970 to 2010. Triple in 40 years means that each generation is about triple as well off as its predecessor. Your generation is triple as well off as your parent’s generation and about sextuple as well off as your grandparent’s generation in US. GDP is one of the factor in a very complex world economy. However, GDP growth may show strengthening economy, more jobs and more income for individuals. GDP growths need to take longer time to achieve quality of life. But GDP are important to hit the goals of a country for entire citizen.

Health and education, availability of goods and standard of living Health and education will affect the standard of living in a country. Higher GDP countries have more advantages because they can develop more new medicine and improve their sanitation. The people can have their own health insurance compared to lower real GDP per person of countries. So, the chances of a child dying are lower in industrial countries compared to least developing countries because of their medical services and basic welfare improvement.

On another important dimension, education will affect the standard of living in a country. Countries which have higher GDP can allow them to gain knowledge easily. This is because it can help them to carry more investor to invest and initiate more universities in that country. So, this will educate more human resources and have more job opportunities. Lastly, it will lead to improve the standard of living of that country.

Besides that, the availability of goods and services also...
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