you saw how economists figured out how to track the economy's performance - by measuring its GDP
Question:
In this part, you also heard macroeconomists say two essential things. Both go along with The Importance of Wealth and Economic Growth. They are:
People in nations that have experienced long-term growth in real GDP per capita are better off than their parent(s) were 30 years ago (and much better off than their grandparents 60 years ago, etc...), in terms of their ability to deal with scarcity and the maximum lifetime utility they are able to obtain.
Economic growth can continue like this indefinitely, thanks to innovation and new ideas. Wealthy nations can continue to see increases in their standard of living, and the poorer nations of today can "catch up" and enjoy that same standard of living in the future. And future generations all over the world can continuously become better off, and better off (again in terms of their ability to deal with scarcity and the maximum lifetime utility they can obtain).
For this discussion discuss both claims and give thoughts.
1- Do you feel "better off" than your parents? Does the burden of scarcity seem lighter than it was for them? Do you feel like the total enjoyment you can receive over your lifetime is greater than what they could achieve?
2-Do you agree that economic growth like we have seen over past decades, even centuries in some cases, is sustainable? Are there sustainability issues that concern you (and here I don't just mean environmental)? Can we innovate our way past these concerns? What sort of world do you see for future generations in terms of scarcity and well-being?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill