'GDP – A Gross Deception\r'

'Capitalism concentrates on merchandise of wealthiness more than diffusion of wealth to get together the needfully, which is secondary in their view. Therefore, the capitalistic stinting governing body has one aim, which is to adjoin the countrys wealth as a whole, and it works to arrive at the highest possible direct of action. It considers that the achievement of the highest possible level of welf are for the members of order will come as a guide of change magnitude the bailiwick income by raising the level of production in the country, and in enabling someones to be able to take the wealth, by being left(p) free to work in producing and possessing it.\r\nSo for capitalists the saving does non exist to satisfy the unavoidably of either individual, rather it is focused on full-blooded the needs of the wider community by raising the level of production and increasing the theme income of the country. It believes that through the availability of the subject field income, the distribution of income among the members of society occurs, by means of emancipation of possession and freedom of work. So it is left to the individuals to find what they can of the wealth, everyone according to what he has of its productive featureors, whether each(prenominal) the individuals or only some individuals are satisfied.\r\nThis is the so c wholeed â€Å"trickle- deal effect”, a straightaway-discredited theory of distribution which h honest-to-gods that the closeness of wealth in a few manpower benefits the paltry as the wealth necessarily â€Å"trickles down” to them, mainly through employment and as a result of investments made by the wealthy. In well(p)-nigh cases, this policy failed, as the benefits were pocketed by a few. gross national product is used widely by the capitalist nations as a measure of total production of entirely goods and services produced in a nation (usually annually) and primal to a government’s nation al income accounts.\r\ngross national product was introduced during World War II as a measure of wartime production capacity, since then the Gross croakic Product (since changed to Gross home(prenominal) Product †gross domestic product) has start a nations foremost indicator of economic progress. but the gross domestic product was never intended for this role. It is merely a gross tally of products and services bought and sold. However it is now widely used by policy makers, economists, world(prenominal) agencies and the media as the primary scorecard of a nations economic health and well- being. Yet in this role it has many an(prenominal) serious flaws. 1.\r\nThe GDP ignores everything that happens outside the realm of monetized exchange, no matter of its importance to well-being and the society. Hence values (humanitarian, ethical, spiritual) other(a) than material values go entirely ignored. 2. The GDP records every monetary transaction as positive, so the costs of social decay and natural disasters are tallied as an economic advance. For example the terrible make of crime are enter positively as adding billions of dollars to the GDP due to the need for locks and other bail measures, increased police protection, property damage, and medical costs.\r\nHurricane Andrew was a disaster for Southern Florida USA, but the GDP recorded it as a boon to the economy of well over $15 billion. 3. GDP ignores the drawbacks of living on foreign assets. Where governments have increased their spending by borrowing from abroad, this raises the GDP temporarily, but the need to fall this debt becomes a growing burden on the national economy. This downside of borrowing from abroad is not reflected in the GDP. 4. The gross national product was turned into the GDP †a change that was cheapjack and exploited by the Capitalist nations.\r\nUnder the old measure, the Gross National Product, the earnings of a capitalist multinational firm were attributed to the country where the firm was have and where the profits would pull downtually return. Under the Gross Domestic Product, however, the profits are attributed to the country where the factory is located, even though the profits wont stay there. This accounting call forth has deceptively turned many struggling nations into statistical boomtowns. Statistics which are used in aiding the push for globalisation and free trade.\r\nConveniently, it hides a basic fact: that the western sandwich Capitalist nations are walking off with the resources of poorer nations and job it a gain for the poor. 5. Above all GDP ignores the distribution of income. In effect the GDP hides the fact that a rising tide does not plagiarize all boats. From 1973 to 1993 in the USA, while GDP arise by over 50 percent, wages suffered a decline of almost 14 percent. Meanwhile, during the 1980s alone, the top 5 percent of households increased their real income by almost 20 percent. Yet the GDP presents this giga ntic gain at the top as a bounty to all.\r\nFurthermore the average bet of poor tribe averaged more than 30 million passel over the last 40 years in the US, with an average of 15% of the population being poor. In the meantime, the gross national product continued to increase drastically, over the same period. The GDP grew from $400 billions to $10 trillions from 1959 to 2000. This very large increase in the national product did not contribute to the resolution of mendicancy. much than 30 million people continue to be poor. Hence Capitalism superbly increases the production of products and services, and indeed wealth.\r\nHowever this completely fails to resolve the impoverishment of the individuals. The number of poor people continues to grow. In reality wherefore GDP as a measure of a nation’s economic well being is really a deception. It begins to explain why people feel increasingly gloomy despite formalised claims of economic progress and growth. In Islam, the eco nomic occupation is focused on distributing the means of satisfaction for individuals i. e. the distribution of the funds and benefits to the members of the nation or people, not on the needs which the nation or the people adopt without having any regard to every individual inside the nation.\r\nIn other words, the problem is the poverty which occurs to the individual not the poverty which occurs to the nation. The concern of the Islamic economic system is focused predominantly on satisfying the basic needs of every individual, not the deal of producing economic commodity. Islam makes the subject of study, the basic human needs of man, as a human being, and the study of distributing the wealth to the members of society to guarantee the satisfaction of all their basic needs.\r\nUnlike capitalism it is aware that the treatment of the poverty of a country, through raising the level of production, does not solve the problem of poverty for individuals. Rather, Islam advocates the treat ment of the poverty problems of all the individuals, and the distribution of the wealth of the country among them by addressing their basic needs first, thus motivating all the people of the country to work in increasing the national income.\r\n'