Search for Free 150,000+ Essays

Find more results for this search now!
CLICK the BUTTON to the RIGHT!

Need a Brand New Custom Essay Now?  click here

Defining Economic Growth and GDP

Uploaded by samoneeee on Feb 11, 2012

Question: Define economic growth and explain why Gross Domestic Product fails to provide an accurate overview of the quality of life of a nation.

Economic growth is a positive change in the level of production of goods and services by a country over a certain time period. Nominal growth is defined as economic growth including inflation, while real growth is nominal growth minus inflation. Economic growth is usually brought about by technological innovation and positive external forces.
Even though Gross Domestic Product has been employed as a statistical measure of economic development since the 1950’s, it does not qualify as an accurate reflection of a nation’s development status.
Gross Domestic Product measures the total market value of all goods and services which have been produced in a country within a specific period of time and, on the per capita level, divides the total value of the economy, or its size, by its population figures. As may be deducted from the foregoing, therefore, it does not discriminate between the rich and the poor, thereby indicating poverty levels and, it does not calculate literacy or gender equality levels, to name a critical few.
As a case in point, one may refer to the fact that according to this statistical measure Qatar, Kuwait, and the United Arab Emirates rank 2nd, 4th, and 5th as the most developed countries in the world according to Gross Domestic Product. These countries are not democratic, do not uphold gender equality and have been repeatedly cited by Amnesty International for human rights abuses. This is a clear indication of the extent to which Gross Domestic Product contributes to inaccurate readings of national development status, and indeed, fails to provide an accurate reading of the living standards of those countries.
In direct comparison, the United States of America, Great Britain and France, to name a few, are all democratic nations which uphold gender equality. While there are some cases of human rights issues, the level of the problem is not nearly as high as of those in the Middle East. In accordance to the Gross Domestic Product per capita statistical measures, these countries rank as the 7th, 21st, and 25th on the global Gross Domestic Product scale.
This is a clear indication of the extent to which Gross Domestic Product contributes to the immaculate reading of the national development status and, indeed, fails to provide an accurate reading of the living standards and quality of...

Sign In Now to Read Entire Essay

Not a Member?   Create Your FREE Account »

Comments / Reviews

read full essay >>

Already a Member?   Login Now >

This essay and THOUSANDS of
other essays are FREE at eCheat.

Uploaded by:   samoneeee

Date:   02/11/2012

Category:   Economics

Length:  

Views:   2457

Report this Essay Save Essay
Professionally written essays on this topic:

Defining Economic Growth and GDP


  • The Relationship Between Economic Growth and Unemployment The writer looks at the relationship which exists between economic growt...

  • Economic Wealth and the GDP Measurement

    doing economically, than the Gross domestic product does. Although the Government views the GDP as the best indicator of the coun...

  • US Economy, 2008

    trillion as the forecast GDP in both February and March 2008, and a slight increase to $14.403 trillion in April 2008 (U.S. Gross ...

  • US Economy 200 - 2003

    there were quarters where there was negative real growth, indicating a recession. In 2002 the growth rate increased to 2.2% and th...

  • GDP Questions

    of a new car. If the figure were included in the GDP in the year is was sold ion it would mean the car would have been counted twi...

  • Macro Economic Influences on New Car Sales 2002 - 2006

    disposable income that is available, lessening the spending power. For businesses there is a duel effect, they may find that they ...

  • Monetary Policy And The Federal Reserve

    the past two or three decades, there has been a great deal of money created from borrowing and spending. Consider the level of con...

  • Economic Forecast 2009

    As of December 12, 2008, some current economic indicators are as illustrated in the table below: Indicator Value Inflation % 3.66 ...

  • National Economy and Impact of Interest Rates

    In seven pages this paper examines GDP, interest rates, and the interrelationship that exists between national economic growth and...

  • OECD Countries and UK Economic Growth Compared

    In nine pages OECD countries and UK economic growth are compared in an analysis of standards of living and per capita GDP among ot...

View more professionally written essays on this topic »