GDP, short for gross domestic product, has been universally used as a gauge of a country’s development. However, it has taken a lot of flak in recent years, with some arguing that GDP misses the true value of national prosperity, while others hold the opposite idea. In my opinion, I believe it’s a fallacy to regard GDP as the sole measure of country’s development.
Supporters say GDP closely correlate with the wealth of nations and well-being of its people. According to a survey by Gallup, nearly all residents in top 10% countries by GDP say they have enough money for food, while the proportion in bottom 10%is just two-fifths. Findings also suggest that residents in top 10% developed countries feel more safe and secure in their neighborhoods, and are trusting of their politicians. As if the more wealthy the country is, the more happy its people are.
Yet this isn’t the case with all countries. GDP cannot measure the whole value of all finished goods and services made within a country, such as social media and online economy, nor can it reflect other aspects of development including personal health, leisure time and happiness. The past decade has seen a budding economic recovery from the global crush in 2008, but key indicators in areas such as health and happiness failed to show any surges. A famous economist, Easterlin, believes that economic growth not always accompanied by happiness, for there are income inequality, discrimination and other situations existed in our society. It is a flawed concept to put GDP as the only gauge of national prosperity.
From my perspective, as a measure of a country’s development, GDP still works. But it has its limitations. Happiness is affected by multiple factors, including inequality and many other elements we still don’t know. But what we know for sure is that it’s a fault to equate GDP with well-being. GDP can’t help leaders to make the best decision, something has to be to provide help. When other aspects, such as environmental quality, education equality, and people’s well-being are included, the world will be a better place.
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