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we should not continue to measure GDP as we do right now

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we should not continue to measure GDP as we do right now

In my own opinion, I think we should not continue to measure GDP as we do right now. In essence, the existing measurement criteria were sufficient during the old age when technology was not imminent (Rohner, 2018). The digital age also referred to as the information age, has rapidly changed how economies perform different tasks. The past incorporated material goods, which were natural output to be measured. At the moment, the digital age does not solicit the same. We are producing a lot of commodities than ever before, but ironically, by using little effort than before.

Additionally, the digital age is characterized by the production of a lot of intangible goods such as music, poetry, movies, among others (marketing, 2019). They form a construct for leisure, in which GDP cannot accommodate on its scale. Tentatively, an increase in these forms of production may not allow economists to know whether people are thrilled or not, even if the GDP is increased.

All hope is not lost. The measurement criteria for GDP should otherwise be tweaked a bit to accommodate the different constructs existing within the digital age. After all, GDP is not entirely inefficient in its purpose in any economy (Mauldin, 2018). There should be better and more advanced methods to incorporate the measurement of intangible goods and their effects on people’s thrill. Also, several adjustments have to be made with regards to income distribution and the different ways in which it is accrued. The main idea behind this tweak is to add more data as a baseline for measuring the GDP. In other words, using alternatives like life expectancy, different individual achievements such as education, career, and personal growth metrics can be involved. Doing all these, among others, will ultimately shape how GDP integrates people’s feelings and leisure.

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