Saturday, March 28, 2015
Zach Newton, Chapter 9, Question 6
The most interesting thing for me in this chapter was the first reason given by Wheelan as to why GDP is an inaccurate measure of a country's wealth or success. His example is of China and how when they manufacture they pollute, but the government pays to clean up the pollution, and both feed into the GDP. This is clearly not ideal for the human race or growth as a whole because eventually this would probably backfire and all that pollution from the amazingly high GDP country would start to diminish quality of life. This reduced quality of life could lead to less productivity which could potentially lower GDP.
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