Sustainable Development Flashcards
Gross Domestic Product
Total value of goods produced and services provided in a country
GDP Example:
Produce a car sold for 10k, bought parts/material worth 8k, contribution to GDP is 2k.
GDP Origins:
Simon Kuznets, warning US congress of its inaccuracies and inadequacies addressing economies true welfare
Exclusions from GDP:
Black market, cash-in-hand payments, and tax evasion, due to lack of data.
Public goods and GDP:
Primary school might take great investments with incalculable returns.
Example of GDP bad measurements:
BP Gulf of mexico oil spill increased US GDP due to expenditure on work, cutting down the Amazon increases GDP, increasing GDP during war due to increased production and government expenditure.
Inequality in GDP:
1% of population more than 50% of wealth: who benefits from economic activity, not simply how much there is?
Example of corruption impact on GDP:
Malawi: tax evasion drags economic development, being 8-12% of GDP: if collected, total government revenue increase by 50% percent (the amount they recieve in foreign aid, making them independent)
Malawi Tax Havens:
Multi-national corporations and wealthy individuals
Developed economy wealth growth:
70% larger than in 1992, despite social strife and ideological conflict
Underestimating GDP:
Parent’s housework/childcare unpaid are excluded result in 3.8 trillion underevaluation of US economy
Progressing from GDP:
Formulating public policy goals beyond growth of GDP to construct new statistics needed to motivat/monitor implementation
Human Development Index
Average achievements in health, knowledge, and standard of living.
Happiness Index
Measures life satisfaction, happiness feeling, and other happiness.
Example of GDP evidence:
Bending Adversity - Pilling: Tokyo in two lost decades of growth, “If this is a recession, I want one”
