Although the article believes that the Gross Domestic Product (GDP) is a good measure of the economy, it holds that it is not the only way to determine the success of the economy. The article delves on what the GDP covers and also explains why on its own it could be an inadequate way to determine various tenets of the economy such as growth and how much money goes to the middle class.
The author notes that although GDP is an essential measure of a country's economy, there is an increasing need to formulate a measure that tracks the allocation of growth amongst various segments of the population (Krugman, 2018). It further postulates that measuring an economy should be a holistic matter that takes into consideration various elements and players in the economy. Therefore, the author of the article suggests the national distributional accounts as the complement to the measurement of the economy. For instance, the national distributional accounts focuses on measuring the complete national income therefore enabling the computation of growth rates at each quantile.
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As earlier noted, the author provides an alternative to the GDP as a measurement of the nation's economy. Other than providing the essence of the national distributional accounts, the author notes that the alternative form of measurement must remain aware of the diverse demographic segments and levels of production. The system of measurement must also assess who significantly benefits from the economic growth and the segment that receives little impact from the growth.
With regards to how it relates to my life, it is important to note that the economy is a broad term that takes into significance several issues from production, trade, wealth, and production among others. As a college student aspiring to graduate and become employed in the economic sector, the country must come up with an effective measure of the economy so that we can have a clear picture of our chances of getting employed. Secondly, the tendency to over-rely on GDP as a measure fails to take into keen consideration of our level of satisfaction as citizens. Although the GDP could be high, certain essential sectors of the economy could significantly be facing shortages. As a result, complementing the GDP with an indicator such as the national distributional accounts sets good precedence in a holistic assessment of the economy.
The article connects to my passion of being an economist in the future. In practicing my career and passion, I have always envisioned myself giving the government a plethora of essential tips on how to bolster its production and elevate the GDP. I believe that measuring the income alone does not provide a clear picture of the economy. It goes beyond production and requires a critical understanding of how each member of the society contributes or otherwise derails economic growth. Therefore, it would only be imperative to have at least five elements of measurement to achieve a clear picture of the economy.
Economy and production are important tenets that even the Bible addresses. In 2 Thessalonians 3:10, the Bible says, "For even when we were with you, we used to give you this order: if anyone is not willing to work, then he is not to eat, either." Therefore, working equates to production and eating is the symbolic meaning of economic viability. Thus, economic measurement via the GDP has a spiritual connection with me because I am constantly reminded to work for my own betterment.
Lastly, I would want to know more about how more economic measurement indicators other than GDP and national distributional accounts could be formulated to depict rates of unemployment and general satisfaction among people.
Reference
Krugman P. (August, 2018). “For Whom the Economy Grows” New York Times. Retrieved from : https://www.nytimes.com/2018/08/30/opinion/economy-gdp-income-inequality.html
