The Importance Of Economic Welfare

Tracking a countries macroeconomic performance is critical to any and all countries willing to start up an economy, or trying to improve their economy. Countries seeking a solid performance report should primarily use income as their start up to finding the best possible economic route towards climbing out of economic drought. Income is the single most important factor in measuring economic performance. Gross domestic product otherwise known as “GDP” is the most frequently used measure of a country’s economic activity. GDP shows the total value of all final goods and services legally produced in an economy in any given period of time. There are four key elements in GDP that need to be watched to compute the country’s standing GDP, including …show more content…
There are plenty of reasons on why an economy can’t improve their economic welfare, but some reasons are bigger than the rest. The first reason is having no trade. This can help out smaller countries because they may have a primary luxury product that can only do that specific country good, but most countries should be involved in trade because the benefits of exporting and importing can boost an economy in the blink of an eye. The second key problem that a country can have is the loss of profit through illegal sales and trade, specifically on drugs. Drugs can be a countries worst nightmare or their fairy tale dream. The money spent on the war against drugs can cost a country billions of dollars. If you were to legalize and tax that product a country could climb out of debt in a short amount of time except for the U.S. it would take a lot more to climb out of our debt… The third reason for an economy to have a poor GDP per capita can result from illegal immigrants taking jobs that were once included in GDP but are now illegally being dealt under the table. This can cause serious miscalculations when determining a true real GDP per capita as the U.S. is another prime example of this