Eric Zencey, Professor of Historical & Political Studies at the Empire State College in his book titled, "Virgin Forest : Meditations on History, Ecology and Culture" mentions that GDP measures activity and not benefits. Also GDP excludes a great deal of production with economic value. Neither volunteer work,nor unpaid domestic services are accounted. Also, it does not include economic benefits from nature. He cites an e.g. If you let the sun dry your clothes, the service is free and does not show up in domestic product.; if you throw your laundry in the dryer, you burn fossil fuel, make the economy unsustainable and give GDP a bit of a bump. He makes a distinction b/w nature-capital services and built-capital services and says that replacement of nature-capital with a built-capital service shows up as economic activity. Another e.g. Hurricane Katrina caused a damage of $ 82 billion, but when destruction is remedied the GDP shows activity & goes up. Some fallacies. He moots the new term "Gross Domestic Transactions" so that it will be clear that activity is what is measured and indicated. Misrepresentation of GDP as well-being of individuals will be cleared. He adds that use of productivity as the main indicator is not mandated by law which opens the case for a NEW accurate measure - "Net Economic Welfare". Many interesting views are expressed making a case for dropping th
Re: And
by avijit raha on Feb 09, 2011 04:47 PM
70% Indian lives Rs. 20 a day thus they do not require a bank A/c...all they want live with a human dignity friend. 2 square meals a day is luxury for them...forget bank A/c
Indians are good workers outside India. In dubai in the biggest building The burj, 2 out of 9 hotels are owned by Indians. They also own many other businesses. Many leading hospitals international schools and colleges there are run by Indians.
It is nothing but a feel good factor. It is the Statistician gambling and nothing more. What are the datas be compiled. What about the additional generation of products through the so called black money. What effect is added in the GDP. We are feeling good that is all we requires and it is this factor.
