GDP

This blog is my take on the video “What is GDP,” podcast “Why GDP is like GPA,” and article ““Why GDP Per Capita Can Start a Bar Fight.” This information appeared on the Planet Money website on October 27, 2011, October 28, 2011, and January 10, 2011.

 To understand what GDP is the video “What is GDP?” will explain to us an idea of the meaning about what GDP is. According to Simon Jonson, he talks about the Gross Domestic Product (GDP) and that GDP is a measurement which defines how the economy is doing in the country how it changes. Everything thing you do in your day to day life such as taxes and other services are all added to GDP.  Adam Davidson and the economist Simon Johnson went to a grocery store to find out more about GDP. When you come across a product that is made in a different country for example in the video Adam Davidson and Simon Johnson found tennis balls which were made in China. Simons said that it is an imported GDP, which means that inputs, that has to be taken out of the consumption while calculating the GDP. In other words the prices that we pay for the tennis balls go to Chine’s GDP, and some of them stay in the U.S.

“Why GDP is Like GPA.” In the Planet Monkey podcast discusses how everything people purchase, manufacture or the services they use are all counted to GDP. The important fact is GDP is like GPA. We all know about GPA it shows if you are a good student or not. It’s the same thing with GDP, when a countries GDP is low there economy is bad, but if their GDP is good it means that the economy is doing well in the county. This article talks about how Europe’s GDP for insurance is 10%, but in the United States is 17%. The people in Europe are benefiting from the productivity growth in leisure.

Coming from Europe there are far more things more important than work. People spend more time with their families and have different traditions then we do in America. Living in Europe is expensive, but people that do have jobs also have time to spend with their families and friends. When I was growing up I never seen so many bills till I came here. Everyone lived carefree and stress free. Coming to America I seen people work really hard to just put food in the table and still didn’t have enough money to enjoy themselves. When you work in Europe you have time to go out and enjoy life not work every day just to pay your bills and put food on the table.