Tuesday, May 7, 2013

Prosperity without growth?


1. The issue this article talks about is if there truly is prosperity without growth. It questions our GDP formula (GDP = C+I+G+(Exports-Imports)) because the formula does not calculate in "the over exploitation of resources, the destruction of biological diversity, air pollution, noise, the expansion of impervious surfaces known as soil sealing, and the poisoning of groundwater." 
                       
2. This issue really can be related to when we talked about the GDP formula and how it was affected by its factors of the equation. This article now makes us think if there is actually something else that affects the formula and makes GDP increase or decrease. 

3. What lead to this was economist's not wanting to include outside environmental factors. This is a really hard policy to figure out because while economists really do want to find a way to measure GDP, they also would love to find a way to measure it properly and include environmental issues. I really do not know of any solutions or any way to improve the formula to include these factors. 

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