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Essay / The Human Development Index is a better measure of...
I will support 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 for measuring economic performance, I mean that because the HDI highlights the trend between longevity, education and economic growth, it calculates a better analysis of a economy (Costa, Steckel 1997, p. 71). In contrast, GDP per capita only represents gross domestic product without paying any attention to other factors in an economy (Hawthorn, Sen 1997, p. 60). That being said, my thesis argues that the HDI is a better measure of economic performance because it takes into account important factors that play an important role in an economy, namely longevity and education; whereas GDP per capita only takes into account gross domestic product, which is far too narrow a calculation to allow for proper analysis. As mentioned above, in an economy there is a trend between longevity, education and economic growth, which means that this trend is essential to understanding an economy and its performance because these aspects are all interconnected. First, the longevity of individuals is vital in a prosperous economy, because economic growth depends on the health and abilities of the people who work and lead it (Costa, Steckel 1997, p. 47). For example, the economic performance of an economy is slowed when the health of a large part of the population is very poor, because the population is then in too poor health to increase productivity and production (Costa, Steckel 1994, p 33). Moreover, in this context, when the population cares about their longevity and well-being, they take additional measures to ensure their well-being by spending a lot of paper......o the economy, this which concludes that the HDI is a better option for measuring the economic performance of economies because it is much less exclusive as it takes into account the vital factors of longevity and education. Works Cited Costa, Dora L. and Richard H. Steckel (1997): Long-term trends in Health, Welfare, and Economic Growth in the United States, in: Richard H. Steckel and Roderick Floud: Health and Welfare during Industrialization, Chicago , IL: University of Chicago, pp. 47- 89. Hawthorn, Geoffrey and Amartya Sen (1994): Lives and Capabilities, in: Hawthorn, Geoffrey and Amartya Sen: The Standard of Living: The Tanner Lectures, Clare Hall, Cambridge, Cambridge, United Kingdom, Cambridge University, pp. 20-38. Nelson, Richard R. and Edmund S. Phelps (1966) Invest in Humans, Technological Diffusion, and Economic Growth, in: American Economic Review, pp... 69-75.