Pandemonium
04-13-2009, 08:28 PM
I am sure we all know what GDP stands for and if you don't know or do know, I am going to tell you anyway to propel the discussion. Hence! We all know that GDP stands for Gross Domestic Product. Sometimes I like to call it 'Global Domination Percentages'. The term Global Domination Percentages you may intuitively pick up as an indicator of how much the wealth of the top 1% of the population is increasing. I emphasise one percent of the population because GPD figures hardly ever relate to the growth of wealth of the other 99% of the population. In all reality the increase of GDP figures correlate to a decrease of income or wealth of the other 99% of the population.
GDP is the measure of the total economic output of an geopolitical area.
We are all taught at a very early age. In my case a very early age because I was more interested in documentaries, news and the internet at six years old than that street with the hideous puppets. I was also disinterested in the hideous puppets we often see on the tube spouting about the deregulation of industry (which only ever promotes oligopolies/monopolies) of course there may be more companies out there in the endless sea of faces but essentially they are all owned by the same people, paying their workers a pittance for wasting away their lives by enacting the same boring repetitive tasks. If you argue to me that the boring repetitive give people a sense of identity, I will start yelling at you like a retard (seeing/hearing retard makes others become retards) and start throwing pyramid structures at you with Mazlow's name written all over it. So we are taught at a very early age that continual growth of the economy/consumption/population growth is a very good indicator of how well we are doing. However, any one that has completed a few semesters of high school mathematics would tell you "Blimey that shazzwazzas is an exponential growth curve, which doubles the magnitude every fifteen years."
Now the shazzwazzas is an exponential function/curve which seemingly doubles every fifteen to twenty years. On the news every night we get the latest of listing of exponential increases and it is applauded for the triumphs of the free market system. Little does the well educated population know that A) There is no free market and B) The error of believing exponential growth is good. The error of exponential growth is that there is an a direct link to exponential consumption. Some are aware of this and some people are not and some people believe that exponential consumption is a great thing because it creates of growth of GDP (a.k.a. global domination percentages.) Exponential consumption would be no issue what so ever if we had an exponentially expanding supply of resources such as food and water. In all reality we have an exponential decreasing supply of resources with an slight linear addition on the side to make the world believe we are producing more. We are producing more but it is dwarfed by the shear magnitude of the exponential curve. A failure of neo-classical economics is that it advocates that there is an unlimited supply of resources. This exponential increase causes the doubling of an capital base (apart from land/natural capital) every period allocation. Hence, an increase of 3% a year of energy consumption extrapolates to an doubling of total energy consumption of fifteen years. Many estimates of the amount of time our finite resources will last has a nice little comment at the end of it "A current rates of consumption." This indicates that we have a trues lack of information about how long our finite resources will last. If you do some basic grade eight maths (using logs) you can deduce that our finite resources (such as coal) won't last 400 years (in the case of Australia) but only 60 years.
As food and water supplies become more scarce because of say an exponential increase of population, you will start to notice the privitisation of your nation's water infrastructure and you will pay more than the weight of gold per liter to sustain your existents. This exponential growth of population will not only put strain on water supplies but also food supplies. Competition for the basic necessities starts wars and riots. Not to mention a little organisation called the W.T.O. through the utilization of the 'Codex Alimentarius' will control your food past the date of December 31st 2009. An estimated 3 billion people will starve to death or will be killed due to competition. One solution to stop exponential growth I presume. Stock up on your nutrient pills that you need to prevent what illness you have from being a problem. In the Codex nutrients are toxins and toxins must be regulated. A) There is no free market.
One thing I have left out is that we need exponential growth of consumption to keep the economy afloat. New debt is need to pay off old debt + interest or the system fails (which it has done due to the flood of new debt in the market). The downfall of the Fractional Reserve system. An interest free money supply was a great idea. Too bad the guy who implemented it was shot in the back of the head. Everyone has long forgot the motives of the great people of the past. Remember Israel Bissel! If you research this guy (Americans Only) you will scratch your head and say "Huh? But I thought that guy done that." When legend becomes truth, print the legend.
Now the following is not my wittings, I am just using it because I am lazy.
The most widely used measure of the health of the economy is gross domestic product, or
GDP. GDP is the government's measure of the final value of all goods and services produced
and consumed in the market each year; it also equals the income earned and spent by
consumers.
But GDP is a bad measure of sustainability: whether or not the typical person is better off in
the long run. In short, GDP has at least four well-known problems.
1. GDP fails to include the value of nonmarket production. Housework, child care, and
volunteer work are the three biggies.
2. GDP fails to subtract the costs of growth. A true measure of welfare needs to
account for the fact that raising GDP imposes costs on society. These include
externalities: the direct health and productivity costs of pollution and congestion, borne by
third parties. Sometimes these externality costs show up as what are called defensive
expenditures — money spent to protect oneself from a deteriorating environment.
Examples include increased doctor visit water purifiers, and cell phones (to make traffic
jams tolerable). Some analysts include as defensive expenditures measures to address
crime and family breakdown, which they view as costs of economic growth.4 When
defensive expenditures boost final consumer demand, the GDP measure perverse
counts them as increasing well-being!
The costs of growth also include increased spending on internalize externalities.
These include the direct costs to industry and government ( pollution control and
cleanup (more than $225 billion per year in the Unite States). Here again, GDP counts
on the positive side of the ledger sort expenditures on pollution abatement and
cleanup. Thus, after the giant c spill in Alaska by the Exxon Valdez, the cleanup money
1 For a broader and accessible critique of GDP, see Cobb, Halstead, and Rowe (1995). Clifford Cobb compiled the ISEW,
discussed in Section 6.6, for the book by his father, John Cobb, and Herman Daly (1989). Clifford Cobb and his colleagues
have updated this measure, now calling it the Genuine Progress Indicator. The GPI is updated on the Web at Redefining
Progress, To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
Goodstein, E. (2008) Economics and the Environment.
John Wiley and Sons: Hoboken, NJ.
Extract from Chapter 6. Sustainability: A
Neoclassical View
2
NNW = Total Output — Costs of Growth — Depreciation
GDP + nonmarket output
— externality costs
— pollution abatement and cleanup costs
— depreciation of created capital
— depreciation of natural capital
Note: This countrywide measure of NNW must be adjusted to reflect
changes in income distribution, since sustainability requires that the
typical person be no worse off.
FIGURE 6.1 Calculating Net National Welfare
spent by the company translated into a big boost to Alaskan consumer spending, and thus GDP.
3. GDP fails to account for the depreciation of the capital used up in production The U.S.
government actually publishes an adjusted GDP measure, calk net national product
(NNP), which does take into account the depreciation of physical, human-made
capital. However, our main concern here is the lack of accounting for the depreciation of
natural capital – both sources and sinks – used up in the production of GDP.
4. GDP reflects the experience of the "average" rather than the "typical" person, GDP is
reported on a per capita basis, showing the mean (average) value for society. But for a
measure of sustainability, we are interested in the welfare of the median (typical) person.
If the income distribution in a country is getting more equal, median welfare will rise
faster than if the typical worker finds his or herself being "outsourced."
Any old bastard with a brain would realise that the wealth of the 'middle class' or median has decreased over the last twenty years proportionally to the increase of GDP. The removal of trade barriers and tariffs have decreased the wealth of the median citizen while increasing the wealth of the top 1%. Such organisation as the I.M.F., World Bank, W.T.O. and the United Nations have actively advocation such policies to their member nations. I call these organisations the Quadrilateral of Evil. Through all their policies and so-called well intentions they have done nothing than plunge the world's poorest in greater debt and poverty. The World Trade Organisation is the worst offender. This body prevents member nations (mainly third world nations) of introducing industrial relations laws (minimum wage and working conditions), environmental protection laws and tariffs due to the illegalities of violating the free trade agreements which were forced onto them.
Such free trade agreements improve a nation's GPD but do not improve the lively hood of the citizens of that nation. The lack of trade barriers and tariffs cause developed nations into trade with nations which have sub-standard industrialisation laws (due to it being illegal to introduce them). A flood of cheaply manufactured goods and produce (not complying with health and safety standards as that would be a trade barrier and trade barriers are illegal for member nations of the WTO) hit the market causing local competition unable to compete. Jobs are outsourced and the lively hood of citizens in developed nations decrease, while GDP increases.
We are living in an illusion that the increase of GDP increases our lively hood. Turning to alternative measure of lively hood such as the Gross National Product you will notice that it has been decreasing all those years with the increase of GDP. The Gross National Product is a measure of the economic output of the median citizen. Now that GDP is fast decreasing and the world is plunging into chaos the GNP is also decreasing. It is not an inverse relationship.
Well I hope you have had fun reading this. I hope you all discuss, talk, argue and state you already knew all this because you are a clever little INTJ or old and wise or, once again, were told by someone old and wise.
GDP is the measure of the total economic output of an geopolitical area.
We are all taught at a very early age. In my case a very early age because I was more interested in documentaries, news and the internet at six years old than that street with the hideous puppets. I was also disinterested in the hideous puppets we often see on the tube spouting about the deregulation of industry (which only ever promotes oligopolies/monopolies) of course there may be more companies out there in the endless sea of faces but essentially they are all owned by the same people, paying their workers a pittance for wasting away their lives by enacting the same boring repetitive tasks. If you argue to me that the boring repetitive give people a sense of identity, I will start yelling at you like a retard (seeing/hearing retard makes others become retards) and start throwing pyramid structures at you with Mazlow's name written all over it. So we are taught at a very early age that continual growth of the economy/consumption/population growth is a very good indicator of how well we are doing. However, any one that has completed a few semesters of high school mathematics would tell you "Blimey that shazzwazzas is an exponential growth curve, which doubles the magnitude every fifteen years."
Now the shazzwazzas is an exponential function/curve which seemingly doubles every fifteen to twenty years. On the news every night we get the latest of listing of exponential increases and it is applauded for the triumphs of the free market system. Little does the well educated population know that A) There is no free market and B) The error of believing exponential growth is good. The error of exponential growth is that there is an a direct link to exponential consumption. Some are aware of this and some people are not and some people believe that exponential consumption is a great thing because it creates of growth of GDP (a.k.a. global domination percentages.) Exponential consumption would be no issue what so ever if we had an exponentially expanding supply of resources such as food and water. In all reality we have an exponential decreasing supply of resources with an slight linear addition on the side to make the world believe we are producing more. We are producing more but it is dwarfed by the shear magnitude of the exponential curve. A failure of neo-classical economics is that it advocates that there is an unlimited supply of resources. This exponential increase causes the doubling of an capital base (apart from land/natural capital) every period allocation. Hence, an increase of 3% a year of energy consumption extrapolates to an doubling of total energy consumption of fifteen years. Many estimates of the amount of time our finite resources will last has a nice little comment at the end of it "A current rates of consumption." This indicates that we have a trues lack of information about how long our finite resources will last. If you do some basic grade eight maths (using logs) you can deduce that our finite resources (such as coal) won't last 400 years (in the case of Australia) but only 60 years.
As food and water supplies become more scarce because of say an exponential increase of population, you will start to notice the privitisation of your nation's water infrastructure and you will pay more than the weight of gold per liter to sustain your existents. This exponential growth of population will not only put strain on water supplies but also food supplies. Competition for the basic necessities starts wars and riots. Not to mention a little organisation called the W.T.O. through the utilization of the 'Codex Alimentarius' will control your food past the date of December 31st 2009. An estimated 3 billion people will starve to death or will be killed due to competition. One solution to stop exponential growth I presume. Stock up on your nutrient pills that you need to prevent what illness you have from being a problem. In the Codex nutrients are toxins and toxins must be regulated. A) There is no free market.
One thing I have left out is that we need exponential growth of consumption to keep the economy afloat. New debt is need to pay off old debt + interest or the system fails (which it has done due to the flood of new debt in the market). The downfall of the Fractional Reserve system. An interest free money supply was a great idea. Too bad the guy who implemented it was shot in the back of the head. Everyone has long forgot the motives of the great people of the past. Remember Israel Bissel! If you research this guy (Americans Only) you will scratch your head and say "Huh? But I thought that guy done that." When legend becomes truth, print the legend.
Now the following is not my wittings, I am just using it because I am lazy.
The most widely used measure of the health of the economy is gross domestic product, or
GDP. GDP is the government's measure of the final value of all goods and services produced
and consumed in the market each year; it also equals the income earned and spent by
consumers.
But GDP is a bad measure of sustainability: whether or not the typical person is better off in
the long run. In short, GDP has at least four well-known problems.
1. GDP fails to include the value of nonmarket production. Housework, child care, and
volunteer work are the three biggies.
2. GDP fails to subtract the costs of growth. A true measure of welfare needs to
account for the fact that raising GDP imposes costs on society. These include
externalities: the direct health and productivity costs of pollution and congestion, borne by
third parties. Sometimes these externality costs show up as what are called defensive
expenditures — money spent to protect oneself from a deteriorating environment.
Examples include increased doctor visit water purifiers, and cell phones (to make traffic
jams tolerable). Some analysts include as defensive expenditures measures to address
crime and family breakdown, which they view as costs of economic growth.4 When
defensive expenditures boost final consumer demand, the GDP measure perverse
counts them as increasing well-being!
The costs of growth also include increased spending on internalize externalities.
These include the direct costs to industry and government ( pollution control and
cleanup (more than $225 billion per year in the Unite States). Here again, GDP counts
on the positive side of the ledger sort expenditures on pollution abatement and
cleanup. Thus, after the giant c spill in Alaska by the Exxon Valdez, the cleanup money
1 For a broader and accessible critique of GDP, see Cobb, Halstead, and Rowe (1995). Clifford Cobb compiled the ISEW,
discussed in Section 6.6, for the book by his father, John Cobb, and Herman Daly (1989). Clifford Cobb and his colleagues
have updated this measure, now calling it the Genuine Progress Indicator. The GPI is updated on the Web at Redefining
Progress, To view links or images in this forum your post count must be 2 or greater. You currently have 0 posts.
Goodstein, E. (2008) Economics and the Environment.
John Wiley and Sons: Hoboken, NJ.
Extract from Chapter 6. Sustainability: A
Neoclassical View
2
NNW = Total Output — Costs of Growth — Depreciation
GDP + nonmarket output
— externality costs
— pollution abatement and cleanup costs
— depreciation of created capital
— depreciation of natural capital
Note: This countrywide measure of NNW must be adjusted to reflect
changes in income distribution, since sustainability requires that the
typical person be no worse off.
FIGURE 6.1 Calculating Net National Welfare
spent by the company translated into a big boost to Alaskan consumer spending, and thus GDP.
3. GDP fails to account for the depreciation of the capital used up in production The U.S.
government actually publishes an adjusted GDP measure, calk net national product
(NNP), which does take into account the depreciation of physical, human-made
capital. However, our main concern here is the lack of accounting for the depreciation of
natural capital – both sources and sinks – used up in the production of GDP.
4. GDP reflects the experience of the "average" rather than the "typical" person, GDP is
reported on a per capita basis, showing the mean (average) value for society. But for a
measure of sustainability, we are interested in the welfare of the median (typical) person.
If the income distribution in a country is getting more equal, median welfare will rise
faster than if the typical worker finds his or herself being "outsourced."
Any old bastard with a brain would realise that the wealth of the 'middle class' or median has decreased over the last twenty years proportionally to the increase of GDP. The removal of trade barriers and tariffs have decreased the wealth of the median citizen while increasing the wealth of the top 1%. Such organisation as the I.M.F., World Bank, W.T.O. and the United Nations have actively advocation such policies to their member nations. I call these organisations the Quadrilateral of Evil. Through all their policies and so-called well intentions they have done nothing than plunge the world's poorest in greater debt and poverty. The World Trade Organisation is the worst offender. This body prevents member nations (mainly third world nations) of introducing industrial relations laws (minimum wage and working conditions), environmental protection laws and tariffs due to the illegalities of violating the free trade agreements which were forced onto them.
Such free trade agreements improve a nation's GPD but do not improve the lively hood of the citizens of that nation. The lack of trade barriers and tariffs cause developed nations into trade with nations which have sub-standard industrialisation laws (due to it being illegal to introduce them). A flood of cheaply manufactured goods and produce (not complying with health and safety standards as that would be a trade barrier and trade barriers are illegal for member nations of the WTO) hit the market causing local competition unable to compete. Jobs are outsourced and the lively hood of citizens in developed nations decrease, while GDP increases.
We are living in an illusion that the increase of GDP increases our lively hood. Turning to alternative measure of lively hood such as the Gross National Product you will notice that it has been decreasing all those years with the increase of GDP. The Gross National Product is a measure of the economic output of the median citizen. Now that GDP is fast decreasing and the world is plunging into chaos the GNP is also decreasing. It is not an inverse relationship.
Well I hope you have had fun reading this. I hope you all discuss, talk, argue and state you already knew all this because you are a clever little INTJ or old and wise or, once again, were told by someone old and wise.