Is GDP The Wrong Yardstick For Measuring Prosperity Summary

A Critique on Macroeconomic Events and Societal Outcomes

“Is GDP the Wrong Yardstick for Measuring Prosperity?”

Introduction

The debate on replacing the Gross Domestic Product (GDP) economic measure with the Genuine Progress Indicator (GPI) has been ongoing for quite some time. The main argument on as to why the shift is crucial and paramount, is that GPD fails to include a high number of indicators that generally affect the economic welfare and output. These indicators are majorly things that people find valuable and thus they affect the societal and environmental welfare. While it is true that GDP has its own setbacks, it is worth to also determine the problems inherent the GPI measure and this is discussed by different individuals in the video “Is GDP the Wrong Yardstick for Measuring Prosperity?”

Genuine Progress Indicator

David Goshorn of Maryland Department of Natural Resources describes GPI as the Genuine Progress Indicator. GPI, unlike Gross Domestic Product (GDP), goes an extra step in including

With the development of robotics technology millions of people will more likely lose their jobs and thus leading to unemployment. Kaplan suggests that about 50% of all retail clerks will most likely lose their jobs in the near future. The retail industry employs an approximately 5 million individuals in the Unites States of America alone, indicating that about 2.5 million people will lose their jobs in the near future. However, robotics technology has created a new industry thus creating new job opportunities. Unfortunately, the workers who will lose their jobs will not have the needed knowledge and expertise to get these new jobs. Thereby leading to structural unemployment which happens when the economy shifts thereby creating a mismatch between the skills needed and the skills of the workers