ºÝºÝߣ

ºÝºÝߣShare a Scribd company logo

Oakland Schools Economics Moodle, Unit 3, Lesson 3 GPI ºÝºÝߣs

•Download as PPT, PDF•
•
D
Derek D'Angelo

The document introduces the Genuine Progress Indicator (GPI) as an alternative to GDP for measuring economic well-being. The GPI was developed in 1995 and attempts to measure economic factors not captured by GDP, such as income distribution, leisure time, and volunteer work. Unlike GDP, the GPI subtracts various negative economic factors such as costs of crime, pollution, infrastructure loss from disasters, and foreign debt.

1 of 2
Download to read offline
An Alternative to GDP: GPI - Genuine Progress Indicator • Developed in 1995 • Attempts to measure factors not measured by GDP • Adjusts for income distribution • Focuses on economic well- being not monetary transactions • Adds for – Increase in leisure and vacation time – volunteer and non-market work
Genuine Progress Indicator (GPI) Subtracts for • Crime = $40 billion/yr • Pollution and loss of natural resources – Counts $1.2 billion in toxic clean-up costs decrease • Health care expenditures for preventable illness – Heart attacks – High blood pressure • Loss in infrastructure – From natural disasters or war • Foreign debt counts as negative – GDP can count as positive government spending

More Related Content

Oakland Schools Economics Moodle, Unit 3, Lesson 3 GPI ºÝºÝߣs

  • 1. An Alternative to GDP: GPI - Genuine Progress Indicator • Developed in 1995 • Attempts to measure factors not measured by GDP • Adjusts for income distribution • Focuses on economic well- being not monetary transactions • Adds for – Increase in leisure and vacation time – volunteer and non-market work
  • 2. Genuine Progress Indicator (GPI) Subtracts for • Crime = $40 billion/yr • Pollution and loss of natural resources – Counts $1.2 billion in toxic clean-up costs decrease • Health care expenditures for preventable illness – Heart attacks – High blood pressure • Loss in infrastructure – From natural disasters or war • Foreign debt counts as negative – GDP can count as positive government spending