gnp&gdp - Problems with using GNP/GDP growth as a...

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GNP and GDP: Good measures of economic development? Definitions: GNP and GDP GNP (Gross National Product) or GDP (Gross Domestic Product) can be determined as the amount of "stuff" - goods and services - that is produced. The difference between GNP and GDP is a matter of the nationality of the producers and the location of production: GNP = goods and services produced by the corporations in the nation + goods and services produced by the nation corporations in other countries GDP = goods and services produced by the corporations in the nation + goods and services produced by foreign corporations in the nation These can be thought of as measures of national output or income. GDP divided by the population would sometimes be referred to as per capita income.
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Unformatted text preview: Problems with using GNP/GDP growth as a measure of progress or development:-doesn't count unpaid labour, especially women's care work.-doesn't count externalities - costs that are externalized (passed on ) to someone else. For example, polluting factory are able to pass on the cost of damage to health and the environment.-does count negative goods - the clean up of a toxic waste dump is counted as a plus in terms of GDP.-ignores distribution, quality of life, equality, sustainability-ignores the question of whether the world can sustain high rates of growth given the depletion of non-renewable resources and environmental damage....
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