RS 5: GDP

What exactly is GDP? Gross Domestic Product is the accrued measure of how the economy is doing. Is it growing or shrinking? Every penny Americans spend, whether on cocaine or cocker spaniel puppies, counts in the GDP! I think GDP is a pretty simple theory to calculate. You only count the final price, but not each step of the product development! GDP does not have double charges, and services are added to the GDP as well.

I LOVE the idea of comparing Gross Domestic Product to a student’s Grade Point Average. This quote from the National Public Radio article explains it best:

“But just giving out GDP is like talking about your GPA in high school.
Sure, it's useful to apply to college. But your GPA paints a limited picture of what kind of student you really are.”

Sure, a student can have a 3.5 GPA, but how did he or she get it? Did he or she cheat on their test? Were they unethical? Did they put a lot of useless work into getting that GPA that they didn’t have to? Do they even have a 3.5? A country’s GDP is a great way of seeing how much money a country has or is worth, but there are limits to its benefits.

A student’s GPA has many multitudes. It reflects a student’s ability in multiple classes, therefore showing their intelligence, or lack thereof, on different topics and subjects. Just giving out your GPA doesn’t truly explain what a student is like. When regarding a student’s GPA, the means justify the ends. Sure, a 3.5 is great, but an employer won’t hire a student just from looking at a number they’ve earned.

Even though our economic GPA may be a pretty one, Europeans and Americans would argue with each other on whether or not it actually is the most attractive. GDP per capita, the total GDP of a country divided by the number of people in the country, is a controversial measure that many economists say could start a bar fight between an American and a European. Our GDP measures our larger health care spending, our larger our larger military spending, and our expenses on Social Security and tax preparation. Overall, I think GDP is about as important as a GPA. On the cover it gives a person an idea of how to judge a country of a student, but you won’t really know what a country or a student is made of until you delve into the pages of the book!