Gross Domestic Product and Economic Well-Being

National economies tend to have different management systems and tactics, but there is a commonality of critical metrics that are important to absolutely every government. One such metric is the gross domestic product (GDP), often referred to as a measure of a country’s economic health (Fernando, 2021). In terms of terminology, GDP should be understood as the total value of all services rendered and products produced during the reporting period in a country. GDP has become an objective standard for assessing the level of development of an economic system. Consequently, the higher the indicator, the higher the economic well-being in the country and the more intense the growth rate.

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However, it is fair to say that GDP is not a completely ideal tool. For example, when calculating GDP, income that is in no way connected with production is not taken into account. These can be transactions in securities on the stock market or, for example, the sale of second-hand goods. If a person provides services as a tutor, consultant, make-up artist, or in other industries without tax returns, this also does not affect the GDP figure, which it should raise. At the same time, GDP is ultimately a figure that in no way reflects the degree of income diversification in society. While there is an indirect relationship between GDP and economic well-being, it does not directly answer the size of the middle, poor, and affluent classes. Thus, to build a complete picture of the economic system in a country, it is necessary to use additional tools.

One such abstract parameter is the economic well-being of a nation. A broad interpretation of this category implies that economic well-being is a set of economic goods available to people, limited in volume compared to their needs, resulting in becoming an object of circulation and acquiring a specific exchange value. Consequently, the greater the number of needs can be covered by existing goods, the higher the level of economic well-being in the country. In this sense, it is relevant to trace the connection between well-being’s economic and social categories. When a community has more needs covered, it feels happier and more secure. This is not surprising: an individual burdened with the questions of finding stable, secure housing and money for food can hardly consider himself happy. At the same time, when the government provides sufficient wages, curbs inflation, and has a sound and transparent central bank policy, this is essential for the growth of social well-being. Such countries are expected to have lower crime rates and greater civic responsibility.

Thus, stimulating economic growth is crucial for the state because it is identical to social well-being. However, some may think that targeting economic growth has a destructive effect linked to mercantilism and greed. It must be emphasized that such views are false, for they do not consider the full importance of adequately encouraging the system. Likewise, in the St. Leo framework, economic growth and a focus on productivity do not interfere with the actual Catholic values of the University (SLU, n.d.). On the contrary, the aspect of Perfection can be expressed not only concerning individuals but also in scaling up to the level of the nation. Perfection can mean the intention to improve a country’s economic agenda through government reforms. The Community principle also reflects the idea of realizing economic well-being through growth. The creation of a socially responsible society is impossible without the closure of the need for economic goods, and so it is appropriate to trace the connection of St. Leo’s commitment to profound ideas of economic growth.

References

Fernando, J. (2021). Gross domestic product (GDP). Investopedia. Web.

SLU. (n.d.). Mission statement, core values, & catholic identity. Saint Leo University. Web.

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NerdyTom. (2022, August 1). Gross Domestic Product and Economic Well-Being. Retrieved from https://nerdytom.com/gross-domestic-product-and-economic-well-being/

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NerdyTom. 2022. "Gross Domestic Product and Economic Well-Being." August 1, 2022. https://nerdytom.com/gross-domestic-product-and-economic-well-being/.

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NerdyTom. (2022) 'Gross Domestic Product and Economic Well-Being'. 1 August.

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