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View Poll Results: Replacing the GDP?
GDP is easy and dominant and just continues using it. 2 40.00%
GPI (Genuine Progress Indicator) 0 0%
ISEW (Index of Sustainable Economic Welfare) 0 0%
Green GDP (GDP that includes environmental costs) 0 0%
Others 3 60.00%
Voters: 5. You may not vote on this poll

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Old March 9th, 2016, 06:36 PM   #1

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Should we replace GDP?


With all its defects, GDP remains the dominant measurement in political economy.
Should it be replaced with something more precise?
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Old March 10th, 2016, 07:16 AM   #2
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I think a more useful metric would be actual disposable income (not disposable income as usually defined), essentially GDP minus the cost of living to a certain standard (absolute around the world, not relative, relative indices are worthless) times the population. That would really give an indication of a nation's economic power as provide a metric of available money that can be spent on advancing the nation's interests without undermining internal stability.
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Old March 10th, 2016, 09:22 AM   #3
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Quote:
Originally Posted by constantine View Post
I think a more useful metric would be actual disposable income (not disposable income as usually defined), essentially GDP minus the cost of living to a certain standard (absolute around the world, not relative, relative indices are worthless) times the population. That would really give an indication of a nation's economic power as provide a metric of available money that can be spent on advancing the nation's interests without undermining internal stability.
We already have GDP at purchasing power parity for that. This concept works well on individuals but not so well for countries.
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Old March 10th, 2016, 09:27 AM   #4
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Originally Posted by Abhishek View Post
We already have GDP at purchasing power parity for that. This concept works well on individuals but not so well for countries.
Close, but not exactly the same, the metric would be an indication of 'free money' available in the nation. That is to say money that could be taxed in the event of national emergency without substantially affecting the basic standard of living of the people.
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Old March 10th, 2016, 09:33 AM   #5
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It may not affect the rating of countries but my understanding is that if a school burns down then the cost of rebuilding it counts as part of GDP. Is that correct? Some sort of measure of Constructive GDP might be better but I'll be out of my depth quickly on this one.
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Old March 10th, 2016, 10:13 AM   #6

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Gross National Happiness.
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Old March 10th, 2016, 10:53 AM   #7

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GNI (Gross National Income) per capita might be a more accurate indicator to measure standards of living of citizens of a country than GDP per capita.

This indicator was developed by the World Bank and it measures the average income (both in money and the value of other goods) per capita on an Atlas method. That indicator is the bases to what the World Bank determine which country is developed or not. A developed country, or an high-income economy, is defined by the World Bank as a country with a gross national income per capita above US$12,73.

You guys should check this indicator.
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Old March 10th, 2016, 10:57 AM   #8
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Quote:
Originally Posted by robto View Post
GNI (Gross National Income) per capita might be a more accurate indicator to measure standards of living of citizens of a country than GDP per capita.

This indicator was developed by the World Bank and it measures the average income (both in money and the value of other goods) per capita on an Atlas method. That indicator is the bases to what the World Bank determine which country is developed or not. A developed country, or an high-income economy, is defined by the World Bank as a country with a gross national income per capita above US$12,73.

You guys should check this indicator.
UK just ahead of Japan on that one. Seems strange.
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Old March 10th, 2016, 11:51 AM   #9

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Originally Posted by GogLais View Post
UK just ahead of Japan on that one. Seems strange.
Why? I think it totally makes sense that UK has higher GNI than Japan. It's very well known that the average Japanese doesn't have high salaries and many of them don't own material wealth such as cars, large estates, etc.

Yes, streets in Japan are more clean, they seem to have higher job security, low unemployment and less income disparity, but I think that British, Americans and Australians seem to have more material wealth than the average Japanese.
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Old March 10th, 2016, 12:06 PM   #10
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Quote:
Originally Posted by robto View Post
Why? I think it totally makes sense that UK has higher GNI than Japan. It's very well known that the average Japanese doesn't have high salaries and many of them don't own material wealth such as cars, large estates, etc.

Yes, streets in Japan are more clean, they seem to have higher job security, low unemployment and less income disparity, but I think that British, Americans and Australians seem to have more material wealth than the average Japanese.
Not that we'll known ....
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