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GDP as a measure of welfare - Research Paper Example

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The aim of the paper “GDP as a Measure of welfare” is to measure happiness by interviewing people about how they feel about their health, wealth, and education and then attaching weights to the respective responses. It measures the well-being by incorporating material and spiritual development…

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Subject: Macro & Microeconomics
Type: Research Paper
Level: College
Pages: 1 (250 words)
Downloads: 3

Extract of sample "GDP as a measure of welfare"

GDP as a Measure of welfare al Affiliation (a) High Income: Kuwait and Uruguay Low Income: South Sudan and Burkina FasoMiddle Income: Zimbabwe Upper Middle Income: Hungary (b) Country Income Category Real GDP per capita ($)(2013) Adult literacy rate (total)(%) Life expectancy at birth (total)(years) Internet users (per 100 people) (2009-2013) Kuwait High 43,800 91.79 (2008) 74.73 (2011) 79.2 Uruguay High 15,800 98.49 (2010) 76.41 (2011) 55.1 South Sudan Low 900 27.00 (2009) 55.00 (2011) --.-- Burkina Faso Low 1,400 46.73 (2007) 55.36 (2011) 3.

70 Zimbabwe Middle 500 91.86 (2009) 51.24 (2011) 17.1 Hungary Upper Middle 19,800 99.00 (2011) 74.86 (2011) 72.0 (c) Satisfaction With Life Index This measures happiness directly by interviewing people about how they feel about their health, wealth, and education and then attaching weights to the respective responses. One good thing about this measure is that it measures the well-being by incorporating material and spiritual development side by side as explained by sustainable development, cultural values, conservation, and good governance.

Country SWL Index Kuwait 240 Uruguay 176 South Sudan 120* Burkina Faso 156.67 Zimbabwe 160 Hungary 190 Note: South Sudan SWL Index of 120 is for the greater Sudan before it seceded. (d) Kuwait versus Uruguay Where it compares poorly against Uruguay: Adult Literacy and Life Expectancy at Birth. Here it fares better against Uruguay: Real GDP per capita and Internet user population percentage. (e) GDP tends to determine most of the variables. The plot below is a display of the trend of the percentage each value contributes over time or ordered categories.

GDP is not a good measure because it does not take into account the specific distribution of the incomes to the hands of individuals. They could only be going to few hands hence it does not measure the general welfare of the people. Work Cited Branson, W. (2005). Macroeconomic Theory and Policy. New york: Sage.

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