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Friday, 18 September 10:03 (GMT -05:00)



Business And Politics News

The Guardian on GDP and Living Standards


It seems like GDP has always been a favorite toy in politicians and economists’ hands. It seems that it is fairly simple to sum up all the material goods produced in a certain country and we will get global leaders in terms of GDP – EU (16,092 trillion dollars – the data provided by the IMF in 2012), the USA (15,684 trillion dollars), China (12,405 trillion dollars) , India (4,684 trillion dollars) and Japan (4,627 trillion dollars). These are the countries that produce most of the good consumed around the globe.

 
 
The next sep we do is to divide a country's GDP by the amount of people living in it in order to get the rating of poor and rich countries. It turns out that according to the IMF, Qatar ($102,211 per person), Luxembourg ($79,785 per person) and Singapore (60,410 per person).
 
 
Simple, isn't it? This is exactly who the entire world has been calculating people's wellbeing over the last 8 decades.
 
 
The Guardian on the Drawbacks of the Contemporary Method of Calculating GDP
 
 
The tendencies seen over the last few decades around the globe that the only thing governments have been obsessed with is economic boom. At the same time, somehow they tend to operate abstract figures (including GDP), forgetting that these figures are produced by certain people with different levels of personal income.
 
 
The existing concept was put forward during World War II. Still, at that time it was justified as the major indicator of mobilizing recourses. Still it failed to reflect the real economic situation. The only thing it did is to show the speed at which the nature was turned into money and the common land turned into raw materials.
 
At the same time, these macroeconomic indicator failed to take into account the nature's most precious resources – water and land – the resources of which now seem not as unexhausted as they used to be.
 
In particular, The Guardian cites several examples of underdeveloped countries where the intensive and excessive use of the local water resources needed to back an increase in the production of Coca-Cola, for example, may result in a short-term local economic boom followed by the exhaustion of the water resources and a major economic collapse along with all the devastating economic consequences for the local population.
 
 
                                      
This leads us to believe that the existing economic structure is “anti-vital”. The living standards are measured by means of the financial flows that go through the governmental system. In this case the poor get poorer while the rich get richer.
 
 
Expert Opinion
 
The Guardian is right when picking on the existing GDP criterion when defining the wellbeing of companies and states worldwide. The criterion does have a lot of major drawbacks since GDP doesn’t take into account the labor of housewives and people that work in humanitarian fields if they do not produce products or render services).
 
The Guardian’s example with forests is a good one as well. When forests grow, they are not taken into account when calculating the GDP of the very country but when these forests are cut and turned into timber to be sold/exported (while the place turns into a desert), the timber is definitely taken into account to contribute to the expansion of the GDP.
 
GDP figures are focused on the wellbeing of the entire country in general rather than individuals living in it. This leads to multiple paradoxes.
 
What should the GDP criterion be replaced with? This is the question to the IMF, the World Bank and governments…
 
 
 
 

 

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UK Reveals Brexit Plan

The British government has revealed the plan of quitting the European Union, which is also known as the Brexit. Prime Minister Theresa May promised to publish the final version of the Brexit scenario a couple of weeks ago.

 

 
The introduction to this document explains that the British business community doesn’t want to cancel the referendum results. On the contrary, they are going to benefit from the Brexit. Most members of the House of Commons voted for letting Theresa May initiate the Brexit scenario. Moreover, this is something most British citizens want. At this point, the question is who the UK is going quit the EU for good.
Publication date: 13 February 11:22 PM

Trump's Policies Make NATO Delay Talks with Ukraine

All of you know that the USA has been playing a major role in the NATO. However, after Donald Trump become the U.S. President, the NATO leaders found themselves in an awkward situation. On the one hand, the NATO shows its commitment to help Ukraine resist Russia’s aggression. On the other hand, Donald Trump doesn’t mind making friends with Vladimir Putin. This seems to be the key reason why the NATO decided to suspend the talks with Ukraine in order to avoid any unpleasant surprises amid uncertainty.

Publication date: 13 February 10:27 AM

Exceptional Status May Cause Problems to UK

As you probably know, British Prime Minister Theresa May visited the United States and met with President Trump. Previously Prime Minister May promised the British people that she wouldn’t be afraid to criticize Donald Trump. If she thinks that something is unacceptable, she won’t be afraid to tell it to him, she said.

Publication date: 13 February 10:09 AM

Is Trump Fighting Dissent Or Democracy?

Donald Trump showed that he is not going to tolerate dissent in the While House. However, some experts now say that the President may well be trying to fight democracy.

 

 
Not so long ago, President Trump fired Acting Attorney General Sally Yates from not defending Trump’s executive order on immigration. In particular, President Trump temporarily banned the citizens of 7 countries from visiting the United States. Those countries are Sudan, Somali, Syria, Libya, Yemen, Iraq, and Iran. He also suspended the refugee program for another 4 months. At the same time, the White House keeps on persuading the public that it’s not about religion (for those of you who don’t know, those are Muslim countries). They say it’s all about fighting international terrorism and prevent terrorists from going to the USA as refugees.
Publication date: 10 February 07:31 AM

Is the Decree to Ease Anti-Russia Sanctions Ready for President Trump to Sign?

They say, Trump’s administration has already prepared the decree to ease the sanctions against Russia, and the decree is now waiting for president Rump to sing it. There has been a lot of tweets about it so far.

Publication date: 10 February 04:58 AM

China Will Only Benefit, If US Quits Trans-Pacific Partnership

A couple of days after Trump’s inauguration as the 45th President of the United States, he decided to quit the talks related to the creation of the so-called Trans-Pacific Partnership (TPP). This agreement would create an environment of lower duties and better regulation of the trade relations between 12 countries, including the USA, other states from North and South Americas, South-Eastern Asia, and Japan.

Publication date: 10 February 04:46 AM

Brexit. Which Way Will London Quit EU?

At this point, London is at the crossroads and choosing the way to quit the European Union. What are those possible ways the UK government is currently choosing from?

 

 
Just in case you still don’t know, we remind you that the High Court of London finally decided to reject the appeal made by the British Government regarding the High Court’s previous decision. The decision forces the Government to initiate Article 50 of the Lisbon Treaty only if the British Parliament approves it. In case the Parliament doesn’t support the Brexit scenario, any further related steps initiated by the UK Government will be considered a violation.
Publication date: 07 February 02:56 AM

UK Government Must Get Parliament’s Approval to Implement Brexit, High Court Insists

The High Court of London has ordered the British Government to get the Parliament’s approval first, if they want to initiate Article 50 of the Lisbon Treaty to launch the process of quitting the European Union, which is also known as the Brexit.

Publication date: 06 February 12:14 AM

Beijing Placed Ballistic Missiles Close To Russia-China Border

According to Global Times, a Chinese media source, China has placed ballistic missiles close to the border with Russia. All in all, there are 3 missile units placed in several parts along the border. These are Dongfeng-41 (DF-41) missiles.

Publication date: 05 February 11:23 PM

Trump's Attempts To Calm Putin Down Will End Up With Another Munich Agreement

Several European experts say that President Trump’s attempts to pacify Vladimir Putin may well end up with another Munich Agreement. In other words, they say that in case Donald Trump assumes that it’s necessary to make concessions to Russia, this is even worth than doing nothing at all.
 

 

On top of that, they say that Donald Trump already made a stupid thing by offering Putin a deal, which is all about canceling the sanctions in exchange for Russia cutting its nuclear arms

Publication date: 05 February 10:43 PM