Iam asked in Social ScienceEconomics · 3 weeks ago

Why do we measure contries' wellbeing by their respective economic growth instead of comparing buying capacity of their citizens?

Update:

Sorry for the poorly worded question. Why do people care if the economy is "growing" let alone how fast it grows. Farmers need to produce enough food for ll the citizens, factories need to make enough clothing, builders need to build houses for everyone, et cetera.. if everyone has enough essentials and has access to good services, would it matter what GDP is?????

2 Answers

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  • Oiy
    Lv 4
    3 weeks ago

    Because it has used PPP instead. PPP based on domestic price of each country.

  • Dooby
    Lv 6
    3 weeks ago

    Economics is the study of choice, not money. When a population feels secure they spend and grow the economy because, good or bad, they do not fear for the future economic condition.... at least in the medium term.

    Those who fear horde for that expected near rainy day. Capacity is a measure of ability, not action.

    ... but I don't really know shite about economics.

    • Lv 4
      3 weeks agoReport

      interesting & humble answer; also, its just one of many arbitrary metrics selected for such evaluation, its fairly easy to obtain information & fairly easy to do the comparisons, maybe its considered to sound fancy, easy to compute, simple & fairly noncategorical for presentations & soundbites, etc

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