Gdp and the Standards of Living

This article focuses on statistics and actions (or lack of) in policies related to poverty. The topics that is discussed included who is the most likely to live in poverty and how it is measured. Also discussed in this article are the public policy response and poverty reduction. The articles credibility is high due to the type source which is academic. However, the reliability of the context in the article is questionable because of the lack of a strongly written argument. The statements appear to lack explanation on how they got their evidence,

Poverty as defined by The World Bank (2000:15) is ‘pronounced deprivation in well-being’. Well being on the other hand is maintaining a good

Whether or not a country uses a relative or an absolute poverty measure undoubtedly influences the understandings of poverty of its citizens.

The 18% poverty level of 2008 is improved from the 33% level of the 1960’s, this decrease is attributable to an increase in educational attainment and income, resulting in lower levels of poverty.

The living conditions of poor families is terrible due to the fact that they are not bringing in as much money as they could because of low

Currently more than 46 million people are impoverished. Poverty exists because the economic system is organized in ways that make the wealth, wealthier at one end and creates conditions that make poverty inevitable at the other. The economic system creates poverty in other ways such as the drive for profit. The economy will set value higher for competition. Competition motivates companies and management to gain control on cost. It makes it a common choice to move jobs from countries to countries where labor is cheaper and workers are neutral about working in poor conditions. Decision making also has terrible effects on millions and millions of people, families and communities. Having a full time job cannot guarantee of a decent income, which is why so many families depend on the two or more earnings from jobs or other adults just to make a living. Battling between work and families also brings a dilemma to families and decision making. For instance, divorce is increasing resulting in large numbers of single parent with families who have a hard time depending on themselves for taking care of their child or children and a living income. “A separate issue that contagiously attempts to measure trends in poverty and income levels more generally is difficult of measuring changes in the cost of living (Feldstein,

I believe the reason for our countries static poverty rate is a result of the low standards of living in this country. the gist of it is that our country is not producing enough goods and services for its citizens to live in a state of comfort, instead most struggle to be financially self-sustaining. In conclusion, it is my firm belief that our country must start producing more goods and services so that our nation can be great once

The closer to 1 a country is the more unevenly the income is distributed in that country. According to the CIA’s public database, the Gini coefficient of the U.S. was .40 in 1997. This number was not too bad compared to Brazil’s .59 at the time (the world’s highest). By way of contrast, a decade later Brazil experienced high economic growth and managed to cut its Gini coefficient by nearly a tenth while the U.S. increased to .45 during the 2007 year. The trend continued to rise with the U.S. reaching new heights of .48 in 2014 according to the U.S. Census Bureau. However, the Gini is only a snapshot of a single aspect of an economy. like any measuring index the Gini coefficient has its flaws. Absolute and relative levels of inequality are tough to measure, which is why income inequality is a convoluted topic. For instance, a hypothetical country with three people of yearly incomes of $650, $1500 and $10000 would be counted as having the same level of inequality with a three person country with incomes of $65,000, $150,000 and $1,000,000. The oversimplification of measuring income inequality is one of the biggest drawbacks of the Gini coefficient. Numbers can create a hyperbolic perception. My dollar may stretch further in mainland China in terms of purchasing power but that alone is not indicative of a better economy. While I may be able to rent a decent hostel for a weekend stay in Beijing, catch a bus to the

Canada is regarded as one of the wealthiest industrialized countries in the world. This indication is contrary to the well-being reality affecting Canadians. Despite being part of the Organization for Economic Co-operation Development (OECD), Canada has lagged behind her otherwise wealthy counterparts in the industrialized countries being position 19 out of 22 nations (Breznitz and Zysman, 2013). This has been attributed to the precarious levels of poverty in a majority of Canadian households. The country has not recognized any official poverty measurement although other universal measures such as LICO is used for measuring relative poverty, a more determinable measure of poverty for wealthy countries.

GDP consists of Gross (before taking into consideration the depreciation in the value of the product), Domestic (within the borders of a country) and Product which simply means a good or service. So what does it all mean when all these three factors are interlinked? GDP is simply the market value of all the final goods and services produced within a country in a given time period – usually a year (Parkin et al. 2005: 438).

I believe that having a GDP per capita as an indicator of economic development in a country is totally wrong, because it is not taking into consideration how the gross domestic product of a country is being distributed. They are not valid indicators to talk about the economic development of a country, because in the case of Mexico at least, there is a 52.3% of the population who are poor and their income is by far, less than the average GDP per capita. (The World Bank 2014) For the freedom indicators, I believe that they are valid and truly represent the situation of both countries.

To keep the economy running smoothly, to maintain price stability and to alleviate poverty are the main goals for formulating policies around the world. The experiences of every country are various as different patterns of economic development. Although it is widely accepted that the reduction of poverty accompanies the economic growth of a country, which encourages many countries, especially some developing countries, to concentrate on improving the standard of gross domestic product (GDP), it is still controversial whether the causal relationship exists or not, for recent evidence shows that if the measures are not taken appropriately by the government, citizens may remain impoverished. This essay focuses on China and India, two of the

Economic Growth refers to a nation’s outputs of goods and services over time. It is measured in terms of Gross Domestic Product (GDP) which is a valuation of a country’s total production in a year. In 2007-08, Australia had a GDP growth rate of 3.7%. By 2012, this growth rate had dropped to 3.1% despite the 20 years of continual economic growth in Australia averaging 3.5% up until 2012. Recent economic growth has been largely supported during the global resources boom where there was strong demand and increasing commodity prices of Australia’s mineral resources such as iron ore, coal, aluminium, copper and zinc. However, even though Australia has a very dynamic and developed economy there are still

Looking for better conditions to the society, the article stated that a high growth does not mean an improvement in social outcomes. The authors brought the information that many countries in the last decade have shown a strong economic growth, however, they could not extinguish poverty, inequality and unemployment, indicators that besides the growth still unsatisfactory.

The situation keeps aggravating despite of several poverty alleviation programs that are implemented every year. The main reason for such failure, apart from the implementation issues, would be the measurement and numbers on which these programs are based. Appropriate measurement is central to analyzing and understanding poverty and its alleviation.