A discussion regarding the Gross Domestic Product and the Genuine Progress Index.
Written in 2005; 900 words; 0 sources; $ 35.95
Paper Summary:
This paper discusses the differences between two methods of analyzing the economy, Gross Domestic Product (GDP), which is considered to be the most comprehensive measure of economic activity, and the Genuine Progress Index (GPI), an alternative approach offered by the group Redefining Progress as a way of linking the economy with social and environmental variables so as to create a more comprehensive and accurate measurement tool by accounting for the value of human, social, and natural capital, in addition to standard measures of produced capital.
From the Paper:
"Economic indicators demonstrate the rate of progress in the economy in terms of growth, income, employment, government expenditures, imports, and similar factors. For the most recent quarter available, the second quarter of 2005, the Bureau of Economic Analysis reports that inflation-adjusted gross domestic product (GDP), which is considered to be the most comprehensive measure of economic activity, increased 3.4 percent after increasing 3.8 percent in the first quarter. Growth has thus slowed slightly and is far below the high in 2003 when the increase exceeded 7 percent. The current rate of growth was enhanced by consumer spending on goods and services, which increased 3.3 percent; by exports, which increased 12.6 percent; and by business fixed investment, which increased 9.0 percent."
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