Is higher GNP good or bad?
I have searched for this answer and every time it is just a definition that I don't understand so all I need to know is, is it good or bad?
- OiyLv 43 weeks ago
Good to boast if you're Chinese or Indian. Good to be a member of OECD if you're a Brazilian. Good to be an American, because you will be the one.
- ZirpLv 74 weeks ago
GNP is about PAID work only. If you and I cook meals and take care of our own children, that's not paid work. If we do the same for eachothers children suddenly the GNP increases...
- cameron_cLv 54 weeks ago
Depends on a few things; An increase in GNP is good only in the sense that when money is spent, someone gets it, and that someone is usually happy about it. Whether it is good in the larger, societal sense depends on who spent it, who got it, what it bought, and what parts of the transaction were not accounted for. Economists are well aware of the inadequacy of GNP as a measure of welfare; they point it out in every macroeconomics course. But many economists, like many Presidents, forget the caveats and turn into cheerleaders, urging the GNP up, helping to reinforce the national illusion that a bigger economy is a better one.
The problem with that illusion is that it has come to dominate economic policy. We assume no changes are needed when GNP growth is high; we call on extreme measures when it is low. With GNP as our only powerful indicator, we are in danger of producing GNP instead of what we really want –health, education, security, a clean environment, jobs with dignity. Surely those goals are more important than just to keep on swelling.