Can you think of any limitations of GDP/GNI? Is it an ideal measure of social development? / SooBin Moon
Can you think of any limitations of GDP/GNI?
Is it an ideal measure of social development?
As the lecture also showed, GDP and GNI are focused on the economy, and the measure of development is not just on the economy. And the problem is that GDP means the value produced by everyone in our country, and things without economic funding such as household chores are not counted. In addition, even if they did the same thing, they were free and paid, and GDP only counts those that were paid. The GNI is the sum of income that our workers in the world have had, and it has the same problem as GDP.
And while many people rate the ideal scale of social development differently, I think there is a national happiness measure in terms of how good our country is to live. The National Happiness Index measures nine areas (psychological stability, health, time use, administrative system, cultural diversity, education, community vitality, environment and living standards) in the four pillars of equal and sustained social economic development, preservation and development of traditional values, conservation of natural environment, and correct governance structure.
And if we look at the economic scale, we can use the degree of income disparity between the rich and the poor to look at absolute poverty, to compare the income and prices of the poorest classes, or to look at relative poverty
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