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In last week’s contribution I wrote about the growth in the gross domestic product as a measure of economic growth and how this may hide certain issues in our economy. I referred to the qualitative elements such as the need to have a more just and sustainabMore about numbers
In last week’s contribution I wrote about the growth in the gross domestic product as a measure of economic growth and how this may hide certain issues in our economy. I referred to the qualitative elements such as the need to have a more just and sustainable economy, and the need for people to be satisfied with their lives. I had also mentioned that there are more qualitative elements to consider, which is what I will focus on in this week’s contribution. In 2017 the growth in the gross domestic product was 6.6 per cent in real terms (that is after accounting for inflation) over 2016. The growth since 2011 was of 43.6 per cent. This means that the so-called national cake has most certainly grown in quite significant terms in the last years. The growth in nominal terms (that is before accounting for inflation) was of 62.4 per cent. Students of economics know that there are three methods of measuring the GDP – the expenditure method, the production method and the income method. Each method gives the same result. The income method explains who were the beneficiaries of this growth. Between 2011 and 2017, the growth in total compensation of employees was of 60.6 per cent, while the... Read more