RichardAWilson
24th June 2011, 22:51
http://venezuelanalysis.com/analysis/5907
They repeatedly refer to productive or economic growth, using GDP.
GDP is basically the amount of goods and services produced in a country, and it can be calculated by output of enterprises, people’s expenditure in buying things, or producers’ incomes.
The expenditure method, for example, adds up private consumption, investment, government spending, and exports minus imports.
The final number is based on the “market” value of the goods and services, not on their social utility. It’s a measurement that assumes that consuming more than we need is good.
Typical of capitalism, what the products are don’t matter, only the final dollar amount. So, under GDP, high spending on war or high spending on healthcare are the same thing.
Oil spills (because there is a cleanup cost) add value to the GDP, whereas things like child-rearing, housework, volunteer and community work don’t count at all because no money is directly involved.
The production process – whether it is sustainable or environmentally damaging, and workers’ wages and conditions – doesn’t affect the GDP, and, because of wealth disparities and a growing super-wealthy class:
GDP per capita can increase while the earnings of the poorer majority decrease or increase at a slower rate.
They repeatedly refer to productive or economic growth, using GDP.
GDP is basically the amount of goods and services produced in a country, and it can be calculated by output of enterprises, people’s expenditure in buying things, or producers’ incomes.
The expenditure method, for example, adds up private consumption, investment, government spending, and exports minus imports.
The final number is based on the “market” value of the goods and services, not on their social utility. It’s a measurement that assumes that consuming more than we need is good.
Typical of capitalism, what the products are don’t matter, only the final dollar amount. So, under GDP, high spending on war or high spending on healthcare are the same thing.
Oil spills (because there is a cleanup cost) add value to the GDP, whereas things like child-rearing, housework, volunteer and community work don’t count at all because no money is directly involved.
The production process – whether it is sustainable or environmentally damaging, and workers’ wages and conditions – doesn’t affect the GDP, and, because of wealth disparities and a growing super-wealthy class:
GDP per capita can increase while the earnings of the poorer majority decrease or increase at a slower rate.