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Russia for instance has been having an education system that determines its future economic development as it specializes in providing learners with basics in various fields like technology and trade. This therefore shows particularly that GDP can be the only factor to be used to gauge the performance of an economy in a country. Education at large is an expenditure to the economy therefore it should be counted during the measuring of Russsia’s standard of living.
The life expectancy of both Russia and Kuwait is high and it is depends heavily on the economy due to expenses used in these two states to ensure that the life expectancy is very high as it looks at spending in good medical facilities and the higher the life expectancy the higher the future economic growth. This two states have tried to encourage for an equal balance in terms of income among the individuals. They do this by setting standards by a certain level to suit every individual there during the calculation of the living standards of the country and the measures included. Hence the GDP per capita have a close relationship with these other alternative measures in determining the living standards. These alternative factors should at all cost be included in the measure of living standards across these two nations economically.
Another important measure of the living standard is the taxation rate in the economy of the involved countries. This simply adds to the revenue income of a nation at total budget which qualifies it to be used as a determinant in measuring the standard of living since it entails income of the authority government which is the overall income to the country. The large the tax rate the higher the income revenue to the government. The six countries as shown with their respective tax rate.
Kuwait belongs to the same category as Russia because
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(“GDP as a measure of welfare Research Paper Example | Topics and Well Written Essays - 500 words”, n.d.)
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(GDP As a Measure of Welfare Research Paper Example | Topics and Well Written Essays - 500 Words)
“GDP As a Measure of Welfare Research Paper Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.org/macro-microeconomics/1643536-gdp-as-a-measure-of-welfare.
GDP as a measure of development.GDP is a good measure of the health of a developing country’s economy. What else should be considered and why? The gross domestic product or GDP is “the value of all final goods and services produced in the country within a given period” (Dornbusch et al., 23).
According to the definition provided by OECD (2009), GDP can be defined as “the standard measure of the value of the production activity (goods and services) of resident producer units”. Thus, GDP concentrates in a few basic aspects of the economic structure, such as the production function of the economy, consumption pattern, and population among others.
These limitations include poor measurement of non-traded products, difficulty in accounting for improvements in the product quality, and the fact that GDP does not include illegal activities which actually affect economic performance. Due to these shortcomings, economics have proposed a change of either supplementing the GDP or replacing it with another method of measuring economic performance.
The social welfare program began in the United States in the 1930s as a way of ensuring that there was a type of social cover for the elderly citizens of the nation. It was a measure by the government to counter what were considered to be threats to the way of life in modern America, and some of these threats included an increase in the number of the elderly, poverty, widows with no income of their own, and orphaned children.
It can be regarded as the size of the economy. More often than not, GDP is usually expressed as a comparison of the earlier quarters or year. For example, if he year to year GDP is up to 4 % this is then perceived to mean that the economy grew by 4% over the last year.
It is clear that welfare programs, most notably that of food stamps and unemployment benefits, are beneficial for society as a whole and help individuals re-enter society’s workforce while coping with unfortunate circumstances. Individuals work hard to come off of receiving such benefits due to social, environmental and familial shame.
Then it becomes easy to determine what is to be measured and determine what kind of data will be useful and should be collected. This is an important stage involved in the research process.
Research requires a number of
The author provides a display of the trend of the percentage each value contributes over time or ordered categories. GDP is not a good measure because it does not take into account the specific distribution of the incomes to the hands of individuals. They could only be going to few hands hence it does not measure the general welfare of the people.