Assignment task:
Make comments about this two discussion.
1. GDP can be misinterpreted and can be confused by being either a measure of national production or economic welfare. The only problem is, that it is only and should be the measure of national production. The reason is the shortcomings that can come with GDP. There would be exclusion to non-market transactions, failure to represent income inequality, and fail to show the nations rate of growth. All these come to tear down what GDP is really for. What I would like to add is higher education and benefits of household work. We need the higher education to progress the knowledge of the future. Adding household work can show how kids are discipline and how they learn responsibility. What I would like to subtract are environmental cost and social cost. The reason is that these cost always have an impact in many ways. The overall goal of GDP should be to help the people of the economy and help control the economy itself.
2. Gross Domestic Product or GDP measures the total monetary value of goods and services within a country during a set period of time. Although GDP also measures welfare and/or country's standard of living it only uses that as an average. The problem with modern day GDP there is no tell on the highs and lows of the country. Some countries GDP can be average due to their top 1% being immensely better off than the bottom 20%. It can't show the individual aspect it is needed. If there was some way to demonstrate either the population in percentages or broken off into groups to show the entire effect the country has on it's GDP. Areas in countries or countries itself can have high GDP but a lower standard of living. Lake Charles is prime example of this. They are one of the best producers of Jet fuel in the US but the surrounding neighborhoods still have blue tarp roofs from hurricanes that hit that area from 2 years ago. They have a decent GDP because of their well needed product from the several chemical plants in that area like Citco and Louisiana Pigment. The problem isn't that the roofing business can't repair those houses it is that these families don't have the funds to replace their entire roof just for the possibility of getting destroyed again in another hurricane.