GDP Gross Domestic Product (GDP) Term Paper

GDP does not measure growth sustainability. My country may be achieving high GDP temporarily in a sense that there is misallocation of investments or over exploitation of natural resources. However, considering that it is a basis of standard of living, market prices of commodities as well as other leisurely items may get up high but in reality it should not be the case. I may be forced to buy cheaper commodity with low quality.

Another discouraging factor of using GDP as measurement is that it counts work that produces no net change or results from repairing damage or harm. In situations like natural disaster such as flood, hurricane or earthquake resulting to damaging effects in building constructions, roads and bridges, and even scarcity of resources such as shelter, clothing and food, may produce considerable amount of economic activity and contributes in the increase of GDP but it would have been better if such did not occur.Quality of life is determined besides physical goods and services. We may want to look beyond the formulas, standardized calculations in determining standard of living….....