Question

Gross Domestic Product is a term you probably hear all the time but may have had no real understanding of before this course. For this assignment, you will create a PowerPoint presentation to teach someone unfamiliar with GDP all about it.

You must use your textbook and at least one reliable resource, preferably from the online library, as references.

Structure your presentation as follows:

1. Title slide (1 point)
2. Objectives slide – list the main points your presentation will cover (1 point)
3. Body slides – at least 80% of text written in your own words, with in-text citations as needed when information from a resource is used.
   1. Define GDP and provide a brief description of its history. (3 points)
   2. Describe the pros and cons of GDP. In other words, what does it capture well, and what does it leave out? (3 points)
   3. Identify alternative approaches to measuring a country’s economic health (you will need to research this). (3 points)
      • Give at least one detailed example of another country’s method of an alternative approach to measuring economic health/growth. (3 points)
      • Explain whether you feel this alternative method would work in the U.S. and why or why not. (3 points)
4. Summary slide (1 point) – wrap up your presentation, provide a summary or set of concluding points
5. References slide (2 points)

You must also include at least ONE relevant graphic, such as a diagram or picture.

Answer 1

a) GDP or Gross Domestic Product is a measure of economic wealth of a country which is defined as the total value of all goods and services produced within the country's geographical borders over a specific time period.
GDP was first introduced on the floors of US Congress in 1937, which was based on the report developed by Simon Kuznets in 1934. After the Bretton Woods conference in 1944, GDP became the main tool for measuring a country's economy.

b) Pros of GDP:

• It enables policymakers and central banks to judge whether an economy is doing well or not, and they can accordingly take policy measures (monetary and fiscal), such as giving boost to economy, raising interest rates, increasing taxes etc.
• It helps to compare the economic well being of different nations. The US has the highest GDP in the world ($21.44 trillion), and it is a developed nation. India, a developing country on the other hand, has a GDP of $2.9 trillion.

Cons of GDP:

• GDP does not accurately define a country's economic well being as it does not take into consideration as to how the monetary value is divided among its people. A country like the US, with the highest GP, may rank very low when economic inequality is considered.
• GDP also ignores many other crucial indicators that affects a country's economic well-being, like clean air, clean water, education, affordable primary healthcare etc.

c) Alternative methods for GDP can include:

1. Human Development Index (HDI): Developed by the United Nations Development Programme, HDI uses both life expectancy and education, along with income per capita to assess a country's economic well being.
2. Gross National Happiness (GNH): It takes into account variables like living standards, health, good governance, ecological diversity, resilience, cultural diversity and resilience etc.
3. Happy Planet Index (HPI): Developed by the New Economics Foundation, HPI factors in the ecological footprint, inequality, wellbeing and life-expectancy of a country.

• Bhutan's Gross National Happiness (GNH) Index: This term was first coined by the 4th King of Bhutan, Jigme Singye Wangchuk, in 1972 where he emphasised the importance of GNH over GDP. He said that sustainable development should take a holistic approach towards notions of progress.

  The concept of GNH has often been explained by its four pillars; good governance, sustainable socio-economic development, cultural preservation, and environmental conservation. The four pillars have been further classified into nine domains in order to create widespread understanding of GNH and to reflect the holistic range of GNH values.The nine domains are equally weighted because each domain is considered to be equal in terms of its intrinsic importance as a component of GNH.

• The method would work in the US because all the four pillars are crucial for all of Americans' well being and they would be willing to answer the questionnaire to improve their GNH score.

References:-

1. GDP Alternatives: 7 Ways to Measure a Country’s Wealth, Ethical.net

2. 2015 GNH Survey Report, Centre for Bhutan Studies