GLBL 210 Lecture Notes - Lecture 15: Structural Adjustment, Gross Domestic Product, Disposable And Discretionary Income
Document Summary
How do we measure economic growth or well-being: based on liberal classical view, based on views of america and europe after industrial revolution, a move from rural to urban. Economic growth is measured as : a country"s domestic income, national output or productivity, market value of all goods and services produced for final sale in a domestic economy. Correlation but not determinants (e. g. geography); gdp as productivity. Alternative: gnp (gross national product) accounts for activity of all citizens (inside and outside of country) -- less common measurement. Gdp = c + i + g + (ex - im) Does not take into account corruption (human error) in government: leaves out exploitation of colonialism/industrial process, don"t take into account informal transactions (off-the-books or barter system) Critiques of gdp: captures a world of states; not interested in a world composed of individuals, doesn"t account for quality improvements and new products, doesn"t capture quality of life.
