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Is GDP a reliable accounting measure? Below is a quote from Bobby Kennedy on what the Gross National Product means and more importantly what it does not mean. Too much and too long, we seem to have...

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Is GDP a reliable accounting measure?

Below is a quote from Bobby Kennedy on what the Gross National Product means and more importantly what it does not mean.
Too much and too long, we seem to have surrendered community excellence and community values in the mere accumulation of material things. Our gross national product ... if we should judge America by that - counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for those who break them. It counts the destruction of our redwoods and the loss of our natural wonder in chaotic sprawl. It counts napalm and the cost of a nuclear warhead, and armored cars for police who fight riots in our streets. It counts Whitman's rifle and Speck's knife, and the television programs which glorify violence in order to sell toys to our children.


"Yet the gross national product does not allow for the (1) health of our children, (2) the quality of their education, or the joy of their play. It does not include the (3) beauty of our poetry or the strength of our marriages; (4) the intelligence of our public debate or (5) the integrity of our public officials. It measures neither our (6) wit nor our (7) courage; neither our (8) wisdom nor our learning; neither our (9) compassion nor our (10) devotion to our country; it measures everything, in short, except that which makes life worthwhile. And it tells us everything about America except why we are proud that we are Americans."
Kennedy mentions at least 10 things that aren't measured by GDP. YOUR task is to argue that he is wrong. Find a way to prove that we can somewhat account for the factors he mentions in our GDP.

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Answered Same Day Dec 25, 2021

Solution

David answered on Dec 25 2021
117 Votes
Macroeconomic theory defines GDP as the market value of final goods and services produce in
a particular year. Whether GDP can be a good measure of economic wellbeing or not- it is an
issue of debate for long. It is a common argument that GDP can be a good but limited measure
for economic performance of a nation. It has serious flaws. Kennedy has mentioned several
factors that are not considered in GDP calculation. For example, GDP fails to take into account
the security, health, education, clean environment or social cohesion that plays major role in
human life (Editorial Board, Bloomberg view, 2012).
Despite its...
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