The Human Development Index Is A Better Measure Of Economic Performance Than Gdp Per Capita

799 words - 3 pages

I will advance the thesis that the Human Development Index (HDI) is a better measure of economic performance than the Gross Domestic Product (GDP) per capita. By saying that the HDI is a better system to measure economic performance, I mean that because the HDI highlights the trend between longevity, education and economic growth, it calculates a better analysis of an economy (Costa, Steckel 1997, p. 71). In contrast, the GDP per capita only accounts for the gross domestic product without paying any attention to other factors of an economy (Hawthorn, Sen 1997, p. 60). With this being said, my thesis asserts that the HDI is a better measure for economic performance because it considers significant factors that play large roles in an economy, namely longevity and education; whereas the GDP per capita solely consider the gross domestic product, which is a calculation that is much too narrow to gather an appropriate analysis.
As mentioned above, in an economy there is a trend between longevity, education, and economic growth, which means that this trend is essential in understanding an economy and its performance because these aspects are all interconnected. First, the longevity of people is vital in a prosperous economy because economic growth depends on the health and capability of the people who work and run it (Costa, Steckel 1997, p. 47). For example, the economic performance of an economy is slowed when the health of a large fraction of the population is very poor because then the population is too unhealthy to increase the productivity and output (Costa, Steckel 1994, p. 33). As well, in this context, when the population cares about it’s longevity and welfare, they take further steps to ensuring their wellbeing by spending additional income on better diets and health care and the health benefits of these expenditures are displayed in the gross national product (GNP) (Costa, Steckel 1997, p. 67). Therefore, it is clear that, with poor health and welfare, an economy will be punished because it relies on the work of the population, whom, if sick, cannot work efficiently or as much as those who are healthy, which illustrates that longevity is an important role in an economy’s development.
As I just defended the importance of considering longevity in an economy, I will now explain why it is imperative to consider education when calculating the development and performance of an economy. To begin, when a population is educated they will have the opportunity to...

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