How we measure economic success has always been a point of contention. Real GDP per capita, Real GNP per capita, our country’s growth rate, etc. All of these measurements have issues as they do not factor in such things as disparity, sustainability and other important issues we are faced with. Yes, we are finally using Green GDP as a measurement however, we also continue to focus on Real GDP per capita.
The following Economist article on the U.S. economy looks at why this is an issue. As you read look to answer the following question.
1) What is happening to inequality in the U.S.? Why.
2) What is happening to GDP per capita in the U.S.? What would this typically tell us about the health of the economy?
3) What is the problem with using GDP per capita as a measurement of economic health?
4)What other measurement should we look at? Why.
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