Debate Video Script on the topic ” GDP IS A GOOD MEASURE OF SOCIETY’S PROGRESS”
The script will of around six minutes, seven and a half minutes max. The further details are as follows:
1 – Minute – Opening Statement / Introduction
2 – Minutes – Argument For
2 – Minutes – Argument against
1 – Minute – Conclusion
Approximate words will be around 130 to 150 words per minute i.e in totality around 800 to 900 words for the six minute script.
Grading Criteria
As already explained you have to write a script for the debate video on the topic topic ” GDP IS A GOOD MEASURE OF SOCIETY’S PROGRESS” of approximate 800 to 900 words basically it will translate to around 6 minutes.
Kindly also do provide ideas about conducting the video pertaining to Interest, Engagement & X-Factor as mentioned in the grading criteria.
LITERATURE REVIEW – GDP IS A GOOD MEASURE OF SOCIETY’S PROGRESS
Student Name
Institution Affiliation
Course Name
Submission Date
Various studies argue that GDP is an effective measure of a nation’s economic development, while others argue against this ideology. The gross domestic product (GDP) is a measure of social living standards. Measurements of a company’s progress exist to encourage the creation of crucial economic, environmental and social indicators to give an extensive overview of how society’s well-being evolves (Landefeld et al., 2010, 12). Education, gender equality, employment rates, unemployment levels, and healthcare are the primary social measures of a society’s progress and development. The fact that the general idea of living standards is not fully understood by GDP per capita has contributed to the notion that the rises in GDP over time are false. In some respects, the increase in GDP underpins the substantial rise in living standards (Gertner, The Rise, and fall of the GDP, 2010). Thus, GDP has advantages and limitations as a measure of a society’s progress, and these arguments are presented in the following paragraphs.
GDP in Terms of Income, Production, and Consumption
The first measure of GDP is the expenditure approach, which calculates spending by the various groups involved in the economy. Consumption, government expenditure, investment, and net exports are the strategy involved in this approach (Dynan & Sheiner, 2018, 43). All this work contributes to the nation’s GDP. Consumption refers to spending on personal spending or public expenditures. People spend money on products and services which are necessities. Thus, consumer expenditures are more than two-thirds of GDP in the US, making it the most significant part of GDP (Coetzee, 2018, 25). Government expenditure involves public expenditure on usage and gross investment. Governments spend resources on infrastructure, technology, and salaries. When consumer and corporate expenditure both decrease dramatically, government spending can become more critical than another element of a country’s GDP (Ivković, 2016, 257). Private domestic investment or working capital denotes investment. Enterprises spend money on an investment in their enterprises. Total exports of total imports are excluded from the net export format.
The second measure is the income approach, which is a kind of intermediate gap between the two primary GDP calculation methodologies. The income approach measures the revenue generated by all the means of production in an industry, including salaries paid to work, income from land, capital gain in interest form, and revenues of enterprises (Anon, Message from GDP numbers: Step up investment from public funds, 2018). First, taxes such as excise taxes and real estate taxes are categorized as indirect corporate taxes. Additionally, the national income will also be added to the depreciation – a reserve that companies set aside to allow for the substitution of equipment that tends to wear out (Dynan & Sheiner, 2018, 43). All this constitutes the income of a nation collectively. The revenue technique for measuring GDP is based on the accounting truth that every economic expenditure should match the total revenues from all goods and services. It also presupposes that there are four main production factors in an economy and that all income must flow to one such source. Therefore, by combining all revenue streams, the overall production volume of economic activity over time can be quickly estimated.
The last measure of GDP is the production approach. Production is fundamentally the opposite of the expenditure approach. The process to production evaluates the overall worth of the economic output instead of assessing the costs of production that result in economic activity and debits the prices of primary goods consumed, such as products and services, through the processes (Anon, Economic Growth (GDP), 2018). Whereas the spending strategy is forward-looking against cost, the producing approach is retrospective from a finished economic activity perspective.
Advantages of Using GDP as a Measure of Economic Progress
The benefits of utilizing GDP per capita as an economic growth indicator are that it is regularly, widely, and reliably measured. GDP represents a well-accepted, straightforward evaluation of the richness of the economy of a nation. It enhances its level of living, but national income per capita does not represent this. When GDP is high, the output is high; therefore, people can buy items (Gertner, The Rise, and fall of the GDP, 2010). That means, in turn, that companies have the money to hire employees. Therefore, GDP has the great benefit of providing a clear indication of an economy’s good or bad conduct (Ivković, 2016, 265). GDP allows policymakers and central banks to assess whether the economy contracts or expands and act immediately. It may also examine fiscal and monetary policy, financial crises, and tax and exchange plans by policymakers, economic and financial people.
Limitations of GDP
The general idea of living standards is not fully understood by GDP per capita has led to the argument that the rises in GDP over time are false. Theoretically, while GDP increases, living standards may fall if human health, environmental hygiene, and other non-GDP aspects worsen (Anon, Economic Growth (GDP), 2018). GDP counts only products passing via official, structured markets, which is why it misses home-based production and black-market activities (Ivković, 2016, 259). Additionally, by using GDP, on-market transactions are excluded. The degree of income disparity in society cannot be considered or represented, and there is a lack of an indication of the sustainability of the country’s growth rate.
Alternatives of GDP
The Gross National Happiness (GNH) index is one alternative to GDP. It reflects its country’s requirements spiritually and holistically. The GNH accounts for nine factors: living standards, political stability, natural environment, robustness, time spent, mental health, cultural diversity, and communal life, rather than only looking at the money given to products and services (Anon, Message from GDP numbers: Step up investment from public funds, 2018). Secondly, the Human Development Index (HDI) is another alternative that focused not just on wealth creation or environmental protection but also on opportunities and capabilities. Considering both education and per capita income is a solid match to assess whether individuals are being drained of money and possibilities. As a flip from the traditional GDP, the Green GDP changes the measures to assist economies in understanding more precisely where they stand on average (Landefeld et al., 2010, 24). It recognizes the impact of its carbon emissions and takes into consideration the damages caused by climate change. The Green GDP is a commendable endeavor in the way people focused on money can realize the burden of climate change (Erasmus, 2020, 4).
References
Anon, 2018. Economic Growth (GDP). Focus Economics
Anon, 2018. Message from GDP numbers: Step up investment from public funds. The Economic Times.
Coetzee, K., 2018. Slide in GDP growth: the sign of an economy in trouble. Farmer’s Weekly, 2018(18037), pp.25-25.
Dynan, K. and Sheiner, L., 2018. GDP as a measure of economic well-being. Work. pap, 43.
Erasmus, D., 2020. Agri GDP better, but not at its best. Farmer’s Weekly, 2020(20030), pp.4-4.
Gertner, J., 2010. The Rise and Fall of the GDP. The New York Times Magazine. https://www.nytimes.com/2010/05/16/magazine/16GDP-t.html
https://economictimes.indiatimes.com/blogs/et-editorials/message-from-gdp-numbers-step-up-investment-from-public-funds
https://www.focus-economics.com/blog-tags/economic-growth-gdp
Ivković, A.F., 2016. Limitations of the GDP as a measure of progress and well-being. Ekonomski vjesnik/Econviews-Review of Contemporary Business, Entrepreneurship and Economic Issues, 29(1), pp.257-272.
Landefeld, J.S., Moulton, B.R., Platt, J.D. and Villones, S.M., 2010. GDP and Beyond: measuring economic progress and sustainability. Survey of current business, 90(4), pp.12-25.
This is the script I have written, kindly correct it / modify it as per the requirements of the assignment keeping in view the grading criteria as mentioned on the page 1 and 2
Video Script
Opening Statement
Is GDP a good measure of society’s progress
Introduction
You’ve probably heard the term “standard of living” before; it refers to all of the factors that influence a person’s happiness.
Standard of living is a broad word that incorporates a variety of characteristics, some of which are not purchased and sold on the open market and others which are. The amount of GDP per capita, for example, captures some of what we mean by quality of living, as evidenced by the fact that the majority of global migration involves people migrating from countries with low GDP per capita to nations with high GDP per capita.
Various studies contend that GDP is an accurate indicator of a country’s economic development, while others disagree. The gross domestic product (GDP) is a metric for societal well-being. Measurements of a company’s growth exist to support the development of critical economic, environmental, and social indicators that provide a comprehensive picture of how society grows (Landefeld et al., 2010, 12). The key social indicators of a society’s success and development include education, gender equality, employment rates, unemployment rates, and healthcare. The fact that GDP per capita does not adequately capture the general concept of living standards has contributed to the misconception that GDP increases over time are untrue. In some ways, the rise in GDP underpins the significant improvement in living standards (Gertner, The Rise, and fall of the GDP, 2010). As a measure of a society’s progress, GDP has advantages and limitations, which are discussed in the following paragraphs.
Argument For
The advantages of using GDP per capita as an economic growth indicator are that it is monitored on a regular, broad, and consistent basis. GDP is a widely acknowledged and primary measure of a country’s economic prosperity. It raises the standard of living for its citizens, but national income per capita does not reflect this. When GDP is high, the output is high, and people can afford to buy things (Gertner, The Rise and fall of the GDP, 2010). As a result, businesses have the funds to hire new personnel. As a result, GDP has the advantage of clearly indicating an economy’s excellent or lousy behaviour (Ivkovi, 2016, 265).
GDP allows policymakers and central banks to determine whether the economy is declining or increasing, whether it requires stimulus or restraint, and whether hazards such as a recession or out-of-control inflation are imminent.
The national income and product accounts (NIPA), which are used to calculate GDP, allow policymakers, economists, and businesses to examine the effects of monetary and fiscal policy, economic shocks like a spike in the price of oil, and tax and spending plans on specific subsets of an economy as well as the overall economy. Since WWII, national accounts, along with better-informed policies and institutions, have contributed to a major reduction in the intensity of business cycles.
Argument Against
The general idea of living standards is not fully understood by GDP per capita has led to the argument that the rises in GDP over time are false. Theoretically, while GDP increases, living standards may fall if human health, environmental hygiene, and other non-GDP aspects worsen (Anon, Economic Growth (GDP), 2018). GDP counts only products passing via official, structured markets, which is why it misses home-based production and black-market activities (Ivković, 2016, 259). Additionally, by using GDP, on-market transactions are excluded. The degree of income disparity in society cannot be considered or represented, and there is a lack of an indication of the sustainability of the country’s growth rate.
GDP is a limited instrument for gauging the standard of life because many elements that contribute to people’s happiness cannot be bought and sold. Let’s look at a few things that aren’t accounted for in GDP to better grasp its limits.
Leisure time is not included in GDP. Does the fact that the US GDP per capita is higher than Germany’s GDP per capita mean that the US has a higher standard of living? Not necessarily, because the average American worker works hundreds of hours more per year than the average German worker. The extra weeks of vacation taken by German workers are not factored into the GDP calculation.
GDP includes expenditures for environmental protection, healthcare, and education, but not actual levels of environmental cleanliness, health, or education. The cost of pollution-control equipment is included in GDP, but it does not address whether the air and water are cleaner or dirtier. Although GDP includes medical spending, it does not take into account whether life expectancy or infant mortality have increased or decreased. Similarly, GDP counts educational expenditures but does not directly address how many people can read, write, or do basic math.
Conclusion
The problems of using GDP to assess societal growth are significantly greater and more substantial than the benefits. One alternative to GDP is the Gross National Happiness (GNH) indicator. It spiritually and thoroughly represents the needs of its country. Rather than focusing solely on the money spent on products and services, the GNH considers nine factors: living standards, political stability, natural environment, robustness, time spent, mental health, cultural diversity, and community life (Anon, Message from GDP Numbers: Increase Public Investment, 2018). Second, the Human Development Index (HDI) is another option that focuses on opportunities and capabilities as well as economic creation and environmental conservation. Examining both education and per capita income is a good way to see if people are being robbed of money and opportunities. In contrast to traditional GDP, the Green GDP modifies the measures to help economies better grasp where they stand on average (Landefeld et al., 2010, 24). It understands the consequences of its carbon emissions and considers the consequences of climate change. The Green GDP is a good effort in terms of allowing individuals who are focused on money to understand the burden of climate change climate change (Erasmus, 2020, 4).