4. One of the main issues with GDP is that it reflects economic activity rather than economic progress. Thus, Japan's efforts at rebuilding after the tsunami will appear as a boom in construction, when in fact the country has recorded a significant economic setback and the temporary boost in construction activity is simply going to get the country back to its previous level. The first thing that should be added to a new measure of GDP (or economic health) is an adjustment for negative economic activity. This can be a natural disaster, terrorist attack or other activity that detracts from a nation's economic growth but is not currently included in the GDP calculation.
The second issue is that the GDP per capita does not accurately reflect the wealth of a nation. Liechtensteiners do not live materially better than their Austrian and Swiss neighbors, but their per capita GDP says they do. Brunei has a very high per capita GDP, but almost all of that wealth goes to the Sultan -- the average Bruneian has the same standard of living as his Malaysian...
Federal Budget surplus by focusing on the three consecutive years of surplus budgets achieved by the Clinton Administration after nearly fifty years during the last three years towards the end of the second term of President Clinton and his administration from 1998 to 2000. President made public the new White House budget figures that expect a surplus of $39 billion for the fiscal year 1998 and a $150 billion surplus
He states that changes international capital flows have been the primary consequence of increased deficits and likens this to direct competition between the U.S. Treasury and the U.S. exporting industry. He reasons that the flow of foreign funds into the Treasury prevents these funds from being available for foreign purchase of U.S. goods and services. Thus, the more our government borrows and finances with foreign funds, the more our
Greek Debt The European Commission on Wednesday adopted a series of recommendations to ensure that the budget deficit of Greece is brought below 3% of GDP by 2012, that the government timely implements a reform programme to restore the competitiveness of its economy and generally runs policies that take account of its long-term interest and the general interest of the euro area and of the European Union as a whole (Europa,
Rational firms will choose the lowest-cost option between the two. The market is expected to be efficient, so that while some firms will find it cheaper to pollute, other firms will find it cheaper to install pollution abatement mechanisms. Ultimately, the system will seek to deliver the lowest per-unit cost of abatement. This will be achieved because the firms that are going to abate their pollution are the ones for
This, in turn, further stimulates a massive intake of products and services, widening the trade deficit. It is important to note that, despite the fact that U.S. trade deficit has sometimes been associated with low U.S. products and services competitiveness on global markets, this is most likely not the case. According to some critics, this would lead to decreases in export level, encouraging greater levels for the trade deficit. However,
Malaysia's Budget, 2011 Individual Presentation At the time of its independence in 1957, Malaysia's economy was based on primary exports of agricultural commodities and raw materials such as rice, rubber, palm oil and tin. In a series of five-year plans over the past fifty years, the country has been attempting to climb the value chain, becoming a major exporter of electronics. Malaysia has gradually moved away from its traditional Cold War
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