Gross Domestic Product (Gdp) Is an Inadequate Measure of Societal Well-Being and Should Be Replaced by the Human Development Index (Hdi) Essay Example
Title
Gross Domestic Product (GDP) is an inadequate measure of societal well-being and should be replaced by the Human Development Index (HDI)
Abstract
This paper will discuss the anomally of Human Development Index (HDI) and Gross Domestic Product (GDP). In this discussion I will argue for HDI as a fairer comparison of a country’s overall economic wealth health and social well-being rather than the generally accepted method used by most countries of GDP. HDI allows for a more comprehensive understanding of well-being than purely economic measurements like GDP, and better identifies areas of need within countries. GDP is basicially a measure of a country’s overall economic output. It does not consider GDP per capita. If a country has an extremely large population, indication is not so favorable to describe the standard of living, because each citizen would only get a very small amount when wealth is being evenly distributed. What’s more, GDP, which is a traditional economic indicator alone, does not provide an adequate measure of an economy's sustainability. In contrast, from this paper, we can clearly know that HDI is able to secure basic human needs. It is a measure of a country’s average achievements in the areas of health, knowledge and standard of living. HDI is taking into accounts not only average consumption but also distribution and environmental degradation. Therefore, some people prefer using HDI instead of GDP for the reasons stated above.
Introduction
Our choice of indicators reflects how we, as a society, define progress. Many synthetic indicators that we have surveyed are concerned primarily with ‘human and social’ questions, expressed in terms of human development; quality of life and social well-being. In this essay, my discussion will focus on the Gross Domestic Product (GDP) is an inadequate measure of societal well-being and should be replaced by the Human Development Index (HDI). There are three main parts that will be
Gross Domestic Product (GDP) is an inadequate measure of societal well-being and should be replaced by the Human Development Index (HDI)
Abstract
This paper will discuss the anomally of Human Development Index (HDI) and Gross Domestic Product (GDP). In this discussion I will argue for HDI as a fairer comparison of a country’s overall economic wealth health and social well-being rather than the generally accepted method used by most countries of GDP. HDI allows for a more comprehensive understanding of well-being than purely economic measurements like GDP, and better identifies areas of need within countries. GDP is basicially a measure of a country’s overall economic output. It does not consider GDP per capita. If a country has an extremely large population, indication is not so favorable to describe the standard of living, because each citizen would only get a very small amount when wealth is being evenly distributed. What’s more, GDP, which is a traditional economic indicator alone, does not provide an adequate measure of an economy's sustainability. In contrast, from this paper, we can clearly know that HDI is able to secure basic human needs. It is a measure of a country’s average achievements in the areas of health, knowledge and standard of living. HDI is taking into accounts not only average consumption but also distribution and environmental degradation. Therefore, some people prefer using HDI instead of GDP for the reasons stated above.
Introduction
Our choice of indicators reflects how we, as a society, define progress. Many synthetic indicators that we have surveyed are concerned primarily with ‘human and social’ questions, expressed in terms of human development; quality of life and social well-being. In this essay, my discussion will focus on the Gross Domestic Product (GDP) is an inadequate measure of societal well-being and should be replaced by the Human Development Index (HDI). There are three main parts that will be