As we learned in chapter six and seven of macroeconomics textbook by Krugman & Wells, GDP is a measure of the wealth of a country. It is an abbreviation of the Gross Domestic Product. GDP is the value of all outcome of goods and services in a country during a particular time. GDP shows how wealthy a country is and how much the economy was active during a given period. “GDP is important because it is a leading indicator of a country 's economic health. It gives economists an idea of the nation 's financial viability” (Surbhi, 2015). GDP helps to determine the unemployment rate in a country too. If the GDP go up, it shows that the economy is wealthy and the commonwealth has low unemployment and vice versa. Moreover, it is hard to calculate
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By dividing the GDP by the size of the population, we can find the GDP per capita. GDP per capita can be a useful index, but it is not a proper measurement of the happiness. Happiness is what people were always looking for, and it is something beyond the having more stuff. “However, GDP includes many items that do not help well-being: depreciation, income going to foreigners, and regrettable like security expenditure. Economic prosperity is a broader concept, but still restricted to material aspects.” (Bergheim, 2006, p.1).
Bergheim in his research also indicate that there are other features than the GDP is defined the standard of living. These conditions may include non-material aspects such as education, health, life expectancy and the environment. I think other things like freedom and safety also can be added to his this list to measure the standard of living.
In my opinion in capitalism people are not happy. Because the capitalism rules make them sliver and they have to work all their life without having time to enjoy their life. The fair of losing their belonging, competition to have more and more do not give them this chance to enjoy their life. In a Capitalism economy, there is no chance to be able to be with family and friends. There is only work and make payments for the goods and services which produced mostly outside the country. And it does not mean that people by using the advanced technology are happy and satisfy in their
By dividing the GDP by the size of the population, we can find the GDP per capita. GDP per capita can be a useful index, but it is not a proper measurement of the happiness. Happiness is what people were always looking for, and it is something beyond the having more stuff. “However, GDP includes many items that do not help well-being: depreciation, income going to foreigners, and regrettable like security expenditure. Economic prosperity is a broader concept, but still restricted to material aspects.” (Bergheim, 2006, p.1).
Bergheim in his research also indicate that there are other features than the GDP is defined the standard of living. These conditions may include non-material aspects such as education, health, life expectancy and the environment. I think other things like freedom and safety also can be added to his this list to measure the standard of living.
In my opinion in capitalism people are not happy. Because the capitalism rules make them sliver and they have to work all their life without having time to enjoy their life. The fair of losing their belonging, competition to have more and more do not give them this chance to enjoy their life. In a Capitalism economy, there is no chance to be able to be with family and friends. There is only work and make payments for the goods and services which produced mostly outside the country. And it does not mean that people by using the advanced technology are happy and satisfy in their