GDP as an economic measure
GDP is a widely known measure used to assess the value of a country’s production of goods and services. This indicator makes it possible to compare the economic evolution from one year to the next and it follows that the economy is in a positive or negative situation. GDP per capita is another measure that relates GDP to a country’s population, and is used to assess the level of development. When GDP per capita increases, it is associated with more wealth, prosperity and development, while a decrease is associated with impoverishment and deterioration.
GDP per capita limitations
One of the limitations of GDP per capita is that it is an arithmetic average. This means that it does not necessarily reflect the distribution of wealth within a country. For example, in a country with ten inhabitants that produces worth 100 monetary units, the GDP per capita would be 10 monetary units per person. However, this average does not take into account the possibility that some people may have a large share of this wealth while others suffer extreme poverty. Therefore, GDP per capita does not provide a complete picture of the well-being of the population.
Alternative indicators of well-being
To overcome the limitations of GDP per capita, other indicators have been developed that allow a better approximation of the well-being of the population. In Catalonia, there are several sources of information that generate this type of data. The Institut d’Estadística de Catalunya (Idescat) produces indicators of well-being and social progress that include data on living conditions, health, education, housing, among others. The Barcelona Chamber of Commerce also collects information on the progress and well-being of the population. In addition, CaixaBank Research generates information on inequality and housing affordability.
Important factors for well-being
In addition to individual income, there are other important factors for the well-being of the population. Having a job and job stability, as well as maintaining positive personal relationships, are key elements for well-being. Physical and mental health is also a fundamental determinant of people’s perceived well-being.
Mesures alternatives al PIB/h
Recently, two works have been published in Catalonia that offer alternative measures to the classic GDP per capita. One of these works assesses the subjective well-being of people, taking into account their satisfaction with life and their degree of happiness. The other work refers to the Index of Social Progress in the European Union, which measures well-being through more than fifty indicators related to aspects such as nutrition, housing, personal security, education, health , the environment and individual rights. These indicators provide a more complete view of the well-being of the population and allow a more accurate comparison between regions.
conclusion
GDP per capita is an important measure for evaluating a country’s economy, but it has its limitations. To better understand the well-being of the population, it is necessary to use alternative indicators that take into account factors such as the distribution of wealth, employment, personal relationships and health. These indicators provide a more complete and accurate view of the well-being of the population and allow more informed political and social decisions to be made.
