GDP Is Not Enough Research Paper Example | Topics and Well Written Essays - 2000 words

GDP Is Not Enough - Research Paper Example This paper provides an annotated bibliography for the topic GDP is not enough (Adam, 2009). Gross Domestic Product (GDP) refers to the net value of all final production of goods and services in a country. GDP is often measured and calculated in three ways: first, is summing up of all the incomes and profits received from goods and services produced in a country; second is summing up of all expenditures incurred in the production of goods and services i.e. adding up of money earned from exports and deducting all that is used on importation; lastly is summing up all the value added by capital and labor in situations where inputs are procured from other producers and converted into output. GPD accounts only for the flow experienced in an economy thus excluding stocks, wealth and capital investment as this do no account for direct financial transactions, where change of money occurs (Buxton, 2002). Gross Domestic product basically calculates the economic activities with nation’s b orders while Gross National Product (GNP) is concerned with the gross income of the citizens in that country. GNP sums up interests, rates, rents, profits and dividends paid out by outsiders. Policy makers are often much interested with the economic activity level thus making GDP to be more preferred. Although not accurate in an extended period of time, GDP offers a complete snapshot of the economy. It offers a summary of the entire range of economic information into a single number, thus reflecting on comparative weaknesses and strengths of various economic sectors. It is a precise In most cases, an increase in economic growth is often accompanied by equal increase in both income and employment. GDP therefore seeks to estimate such changes in economic and social welfare. However, it can only give a precise figure of certain other contributing factors remain constant. Economic analysts believe that GDP reflects on the general welfare so precise enough to assume it as an equivalent m easure on welfare. However, critics such as think tank Redefining Progress (discussed below) believe that GDP does not reflect concisely the total utility measures (Chien, 2010). Traditionally, economists have been using GDP measure to approximate the economic progress. An increases in GDP value meant the particular country is progressing. Consequently, a fall in GDP meant that the particular nation is rapidly ceding ground. From a strict arithmetical aspect, DGP offers a straight forward indicator to economic wellness. However to a common man, GDP statistics can be deceiving. To counter this ambiguity, Redefining Progress- social think tank came up with the Genuine Progress Indicator (GPI) in 1995. This idea was nurtures as an alternative to the convectional GDP as a parameter for estimating the economic and social wellbeing of a country. The two indicators are based on a common personal consumption data baseline. However, GPI unlike GDP gives adjustment factors and variables that represent both monetary and non monetary aspects of the country’s economy. The adjustment categories can be grouped into the following categories; Personal consumption: this baseline gives similar data input similar to what is used in GDP measurement. Income Distribution; under this, GPI is scaled upward when a higher percentage of a country’

The importance of worldviews in determining national interests Assignment

The importance of worldviews in determining national interests - Assignment Example The worldview can further be explained at a realist point of view and in this case the realists are arms advocates. Realism relies on the concept of balance of power to generate a theory or hypothesis concerning international stability and the likelihood of war and battles between states. On the contrary, the balance of power solely depends on a common foundation for power in which all dimensions can be coherently aggregated. Arms advocates believe that attaining the national interests on the basis of the worldviews is achieved through the use of weapons. That implies going to wars rather than choosing other ways such as diplomacy and negotiations to safeguard their interests (Findlay 2013). On the other hand, the worldviews can be achieved through liberalism policies basically arms control advocates. Liberalism is concerned with the restoration of peace as opposed to war. Therefore, arms control advocates postulate that the national interests can be achieved through peaceful negotiations and diplomacy, which in turn leads to treaties with mutual benefits between states. It is a good approach because it avoids war and vast destruction of property and economic downturns. However, at times it is difficult to achieve when different states have deferring ideologies (Findlay 2013). On the other hand, there exists disarmament advocates that state that nations should disarm for instance, deter themselves from embarking on nuclear weapons programs. Basically, most countries believe that they should have an arsenal of weapons to achieve national interests and the worldviews but disarmament advocates believe otherwise. However, disarmament could be a good approach if and only if every state would implement the exercise without raising false alarms yet they retain weapons. Disarmament could lead to attaining the worldviews while attaining national