Open Access Open Access  Restricted Access Subscription or Fee Access

What Value is Gross Domestic Product as a Macroeconomic Indicator of National Income, Well-Being, And Environmental Stress?

Philip Lawn

Abstract


Gross Domestic Product (GDP) is a monetary measure of the goods and services annually produced by domestically located factors of production. The contention expressed in this paper is that GDP ¾ in particular, real GDP ¾ is little more than an indicator of the annual volume of national economic activity. GDP is a poor measure of national income; is unable to accurately reveal any qualitative improvements in newly produced goods and services; is an inadequate indicator of sustainable economic welfare; is a less-than-ideal indicator of both the rate of throughput and the environmental pressure exerted by economic activity; and cannot even be used to measure the growth rate of a nation’s economy. In sum, we urgently need to abandon GDP and look for alternative indicators of national income, welfare, and environmental pressure. This paper reveals some viable alternatives to GDP.

Keywords


Gross Domestic Product, national income, welfare, environmental pressure

Full Text:

PDF


Disclaimer/Regarding indexing issue:

We have provided the online access of all issues and papers to the indexing agencies (as given on journal web site). It’s depend on indexing agencies when, how and what manner they can index or not. Hence, we like to inform that on the basis of earlier indexing, we can’t predict the today or future indexing policy of third party (i.e. indexing agencies) as they have right to discontinue any journal at any time without prior information to the journal. So, please neither sends any question nor expects any answer from us on the behalf of third party i.e. indexing agencies.Hence, we will not issue any certificate or letter for indexing issue. Our role is just to provide the online access to them. So we do properly this and one can visit indexing agencies website to get the authentic information.