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Ever since industrialization occurred in Europe, America and parts of Asia, economic growth has been the major focus point of most governments. This quest arose because of the desire for higher economic status and political power. However, during this pursuit the subject of personal wellbeing and happiness came about. According to the PEW global survey (as cited in Stokes 2007), it has been noted that, an increase in personal well being has a direct relationship with an increase in economic growth. In other words, people in countries that are economically developed tend to be happier than those in countries with little or no economic growth. As this statement may be true, it cannot be applied to all countries as most of the people in developed countries do not show any signs of getting happier even as their economy is advancing. The controversy here is whether economic growth makes people happier or if happiness is the cost of economic growth. This argument subsequently leads to the question of how economic growth and happiness is measured. This essay will discuss if the government should focus on well being or concentrate on economic growth by focusing more on GDP. The paper has been divided into 5 parts. The first and second part will examine the disadvantages and substitutes of GDP. The third and fourth part will focus on the limit of GDP and effects of income inequality respectively. The fifth section will discuss the outcome of replacing GDP and then a conclusion will be given. Shortcoming of GDP
GDP can be defined as the value of goods and services we produce every year and it is the means by which economic growth is measured (Norberg 2010). Though, this means of measurement puts more emphasis on maximizing production without taking into account the ways our environment is harmed. Since GDP focuses entirely on utilizing the available resources, more factories are established and this increases the amount of C02 and other...
Bibliography: Stevenson, B. &Wolfers, J., 2008.Measuring Satisfaction.The New York Times [Internet], 16 April 2008
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