Gdp – a Gross Deception
GDP – A Gross Deception
Capitalism concentrates on production of wealth more than distribution of wealth to satisfy the needs, which is secondary in their view. Therefore, the capitalist economic system has one aim, which is to increase the country's wealth as a whole, and it works to arrive at the highest possible level of production. It considers that the achievement of the highest possible level of welfare for the members of society will come as a result of increasing the national income by raising the level of production in the country, and in enabling individuals to be able to take the wealth, by being left free to work in producing and possessing it.
So for capitalists the economy does not exist to satisfy the needs of every individual, rather it is focused on satisfying the needs of the wider community by raising the level of production and increasing the national income of the country. It believes that through the availability of the national income, the distribution of income among the members of society occurs, by means of freedom of possession and freedom of work. So it is left to the individuals to obtain what they can of the wealth, everyone according to what he has of its productive factors, whether all the individuals or only some individuals are satisfied. This is the so called “trickle-down effect”, a now-discredited theory of distribution which holds that the concentration of wealth in a few hands benefits the poor as the wealth necessarily “trickles down” to them, mainly through employment and as a result of investments made by the wealthy. In most cases, this policy failed, as the benefits were pocketed by a few.
GNP is used widely by the capitalist nations as a measure of total production of all goods and services produced in a nation (usually annually) and central to a government’s national income accounts.
GNP was introduced during World War II as a measure of wartime production capacity, since then the Gross National Product
Capitalism concentrates on production of wealth more than distribution of wealth to satisfy the needs, which is secondary in their view. Therefore, the capitalist economic system has one aim, which is to increase the country's wealth as a whole, and it works to arrive at the highest possible level of production. It considers that the achievement of the highest possible level of welfare for the members of society will come as a result of increasing the national income by raising the level of production in the country, and in enabling individuals to be able to take the wealth, by being left free to work in producing and possessing it.
So for capitalists the economy does not exist to satisfy the needs of every individual, rather it is focused on satisfying the needs of the wider community by raising the level of production and increasing the national income of the country. It believes that through the availability of the national income, the distribution of income among the members of society occurs, by means of freedom of possession and freedom of work. So it is left to the individuals to obtain what they can of the wealth, everyone according to what he has of its productive factors, whether all the individuals or only some individuals are satisfied. This is the so called “trickle-down effect”, a now-discredited theory of distribution which holds that the concentration of wealth in a few hands benefits the poor as the wealth necessarily “trickles down” to them, mainly through employment and as a result of investments made by the wealthy. In most cases, this policy failed, as the benefits were pocketed by a few.
GNP is used widely by the capitalist nations as a measure of total production of all goods and services produced in a nation (usually annually) and central to a government’s national income accounts.
GNP was introduced during World War II as a measure of wartime production capacity, since then the Gross National Product