Principles of Economics- Mankiw (5th) 489

Principles of Economics- Mankiw (5th) 489 - CHAPTER 22 M E...

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CHAPTER 22 MEASURING A NATION’S INCOME 505 Much of what Robert Kennedy said is correct. Why then do we care about GDP? The answer is that a large GDP does in fact help us to lead a good life. GDP does not measure the health of our children, but nations with larger GDP can afford better health care for their children. GDP does not measure the quality of their education, but nations with larger GDP can afford better educational sys- tems. GDP does not measure the beauty of our poetry, but nations with larger GDP can afford to teach more of their citizens to read and to enjoy poetry. GDP does not take account of our intelligence, integrity, courage, wisdom, or devotion to coun- try, but all of these laudable attributes are easier to foster when people are less con- cerned about being able to afford the material necessities of life. In short, GDP does not directly measure those things that make life worthwhile, but it does measure our ability to obtain the inputs into a worthwhile life. GDP measures the value of the econ-
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.

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