Read the following two articles and post a response to one of the two questions that follow. You must complete your post by Tuesday A.M, April 14.
Greening-the-Gross-Domestic-Product
(1) In “Voices: Greening the Gross Domestic Product,” Garrett C. Groves and Michael E. Webber point out that policy makers are often pressured to choose policies that prioritize either the economy or the environment. Groves and Webber argue that this is a false choice – that policy makers should prioritize both. What are the problems with the way in which Gross Domestic Product is currently measured that make this a challenge?
(2) In “The GDP Myth: Why Growth isn’t always a good thing,” the authors cite several sources of growth that have had negative impacts on economic growth. Identify one of the reasons they site and explain why this source of growth is actually harmful to the economy. __________________________________________________________________________________________________
Optional extra credit assignment (for those who wish): answer the following question in a typed one-page short essay. It should be submitted by April 27.
According to Rowe and Silverstein, the assumption about GDP growth among most economists is that “It makes no difference where the money goes, and why. As long as the people spend more of it, the economy is said to ‘grow.'” Thinking back to earlier class discussions about the environmental consequences of unplanned, unrestricted growth for its own sake, what are some of the problems with this view of growth and why?
(2) As stated in the article, stress has quickly become a multibillion dollar industry with over 70% of all doctor visits being stress related. While stress treatment options are driving up GDP, it becomes a problem when children are also taking mood altering medication in order to “achieve and behave” which runs the risk of “society redefining a whole generation as a drug market segment”.
Policy makers should make choices that lead to a better economy while maintaining the environment. But this is not so easy in our society today. Because our GDP is measured based on how much goods and services we produce in a given year. And the main individuals that produce these goods and services do not like policies that would hurt their profit margins. So they sway politicians to vote for laws that would allow them to do “business as usual.” Our GDP only measures what we create but does not take into account what we destroy to create these goods and services. If we included things such as underemployment, natural disaster costs, environmental loses, and war into our GDP we would see a more accurate measure of how our economy is progressing year by year. But most countries do not want to measure this because it shows that their economy may not be progressing forward as they previously measured. This would lead to more social imbalance.
Q-1
Currently, we measured the GDP by the value of all final goods and services produced in a country during a given year which makes it very difficult to prioritize both environment and economy. Garrett mentions about lack of economic tools and government lack the indicator that incorporates economic robustness and environmental health into a single metric. This is because, he think our economic measurements are obsolete, created before World War II. Consequently, we have to transitioning away from the current national income account system to measure green GDP which will be not easy. He also mentions that creating a green economic indicator means putting a price on common goods such as the atmosphere, the oceans and other shared resources which also can be complicated.
Q-2
The GDP Myth: Why Growth isn’t always a good thing,” one of the sources of growth that have had negative impacts on economic growth that author mentions is “Growing Nowhere” where he mentions , in California , LA most car-congested city in the country for 14 years running and American spend over $4 billion gas which is definitely contributing to the GDP. But as a consequence, LA leads the nation in hospital admissions due to asthma, bronchitis, and other breathing problems, he mentions. He also mention more car means more crash. He also explains that as the roads become more clogged, the auto makers are pushing sports utility vehicles that burn more gas, take up more space, and do more damage when they crash. I totally agree with him with those points, since spending are pushing the GDP up, but it also causing problems that is costing millions of dollar and also the environments.
(2) In “The GDP Myth: Why Growth isn’t always a good thing,” the authors cite several sources of growth that have had negative impacts on economic growth. Identify one of the reasons they site and explain why this source of growth is actually harmful to the economy.
In “The GDP Myth: Why Growth isn’t always a good thing,” the authors cite “Stress” as one of the reason that has negative impacts on economic growth. According to the author prosperity used to bring satisfaction and peace, but these days it has been the opposite. As a matter of fact over 70 percent of all doctor visits are due to stress, according to the National Institute of Mental Health. Stress is in some large measure a part of the economy. It comes from the barrage of stimuli, the prolixity of choices, the pressures to perform and the multiplying claims upon our attention and time, which drive a rising GDP. Stress also produces growth in treatment industries such as counselors, relaxation tapes, seminars and spas. The author states that over 28 million Americans now use depression drugs. Even kids nowadays are taking these drugs and if that is good for them is questionable but it probably is not good for growth.
(1) In “Voices: Greening the Gross Domestic Product,” Garrett C. Groves and Michael E. Webber point out that policy makers are often pressured to choose policies that prioritize either the economy or the environment. Groves and Webber argue that this is a false choice – that policy makers should prioritize both. What are the problems with the way in which Gross Domestic Product is currently measured that make this a challenge?
The problems with the way in which the Gross Domestic Product (GDP) is currently measured that makes this a challenge is that the current system of assessing national income and wealth was never meant to serve as a comprehensive measure of economic development. GDP does not refer to natural resource depletion and fails to account for the costs of waste and pollution. Countries that over-fish oceans or overuse their finite resources receive only positive gains in their GDP. Similarly, nations with eroding dams and levees, pot-holed roads and collapsing bridges receive scant warning from GDP accounting that their society might be in trouble.
And if GDP is the ultimate indicator of what is desired for our economy, then war, hurricanes, earthquakes, deforestation and even divorce are all key steps on the path toward prosperity.
(2) The GDP Myth
Economic matters only about what makes people to spend money, as traffic. Traffic is easy to relate with gas. They are proportional, as traffic increases, the gas used by cars increases too. In Los Angeles burns $800 million annually. This is its contribution to the GDP.
Then, the chain keeps going. While the cars emit gasses by combustion that is reflected in the air we breath, and this means respiratory diseases. So, hospital admissions growth as medical bills by bronchitis, asthma, and other breathing problems.
When you think in traffic you can related with crashes too. In California for example there is a collision every minute helps make car wrecks a $130 billion a year industry in the United States.
The chain goes on, traffic deteriorates the roads that need tolls to maintaining them. This is $20 million cost in the nation. Without mention drivers pays for extra repairs due to the bad shape of the roads, $1.2 billion in California. All of these make part of the GDP
(2) In “The GDP Myth: Why Growth isn’t always a good thing,” the authors cite several sources of growth that have had negative impacts on economic growth. Identify one of the reasons they site and explain why this source of growth is actually harmful to the economy.
One reason why growth isn’t always a good thing as cited in the article the GDP myth is the “flab factor”, middle aged Americans who are clinically obese has doubled since the 1960’s . It is now one in three. People that are grossly overweight has ballooned 350% over the past 30 years. The authors state, “while this is a lot of girth, it is also a prodigious source of growth.” Food is leading the economic ladder at a whopping $700 billion dollar industry, counting agriculture, supermarkets, and restaurants. Americans are eating themselves into a multibillion dollar industry which also results in a $32 billion in diet and weight loss. So we eat ourselves into a stupor then spend money to undo the flab we’ve created. Cosmetic surgery is another booming sector with over 110,000 liposuctions in the nation last year. The article also states that “girth is one growth sector with a bright future”, while childhood obesity is becoming an epidemic. Clothing stores are expanding for obese children and summer camps for overweight youngsters are on the rise. Growth,growth,growth
(2) In “The GDP Myth: Why Growth isn’t always a good thing,” the authors cite several sources of growth that have had negative impacts on economic growth. Identify one of the reasons they site and explain why this source of growth is actually harmful to the economy.
Ans: Stress is one of the reason which have negative impact on economic growth. Dr. Richard Swenson mentioned that 70% visits of the patients are regarding the stress. It is enlarging the treatment industry of counselors, relaxation tapes, stress relief seminars and spas. This article mentioned that 28 million Americans are using PROzac and kindred drugs for depression even the kids are also taking this medicines in present. This drugs have several side effects like suicidal thinking, bleeding risk which are dangerous to human kinds. Therefore, this is a negative impact on economic growth.
In “Voices: Greening the Gross Domestic Product,” Garrett C. Groves and Michael E. Webber point out that policy makers are often pressured to choose policies that prioritize either the economy or the environment. Groves and Webber argue that this is a false choice – that policy makers should prioritize both. What are the problems with the way in which Gross Domestic Product is currently measured that make this a challenge?
The GDP is the value of all final goods and services produced in a country during a given year. However, if we take into account a country’s carbon dioxide emissions, pollution, depletion of ecological assets, deteriorating infrastructure and so on, the total GDP will be lower. The main problem, in my opinion, is that the GDP growth is what desired by economy and governments worldwide are striving to promote GDP growth. The next problem is to price and count the natural environment, the pollution and the waste we produce. Also, our elected officials haven’t felt enough pressure to make changes towards greener economy.
(1) It’s pointed out that policy makers are pressured to choose policies that prioritize either the economy of the environment. Groves and Webber both discuss that its false all due to the fact that policy makers should be able to prioritize both. Main issues is that GDP growth is desired by the economy and governments and they’re all trying to make it a spread throughout the world. Price, and count of the natural environment is also an issue along with pollution from everyday living.
(2) Many negative things is why GDP growth isn’t always a good thing. As stress is one of the key factors in this. There used to be more happiness in the world, now it’s gone downhill and the authors say most of it has changed a lot and that more people go to doctors for stress related issues over normal issues like sickness or mental illnesses.