Monday, December 10, 2012

What GDP Does Not Account For


Another way to measure economic growth is the Genuine Progress Indicator or GPI.  GPI was introduced by Redefining Progress-a nonprofit organization- whose formula takes GDP into account along with more forms of economic measures. Normally, ecosystems have a non-market value but GPI includes them. A new method called "contingent valuation" is similar to ecosystem services but contingent valuation is taken through survey based on how much people are willing to pay for protection or resource restoration. 


(These are all real factors that shape our economy today and are a better way to compare progress between nations) 



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