GDP as a measure of welfare
GDP as a Measure of welfare al Affiliation (a) High Income: Kuwait and Uruguay Low Income: South Sudan and Burkina Faso
Middle Income: Zimbabwe
Upper Middle Income: Hungary
Real GDP per capita ($)(2013)
Adult literacy rate (total)(%)
Life expectancy at birth (total)(years)
Internet users (per 100 people) (2009-2013)
(c) Satisfaction With Life Index
This measures happiness directly by interviewing people about how they feel about their health, wealth, and education and then attaching weights to the respective responses.
One good thing about this measure is that it measures the well-being by incorporating material and spiritual development side by side as explained by sustainable development, cultural values, conservation, and good governance.
Note: South Sudan SWL Index of 120 is for the greater Sudan before it seceded.
(d) Kuwait versus Uruguay
Where it compares poorly against Uruguay: Adult Literacy and Life Expectancy at Birth.
Here it fares better against Uruguay: Real GDP per capita and Internet user population percentage.
(e) GDP tends to determine most of the variables.
The plot below is a display of the trend of the percentage each value contributes over time or ordered categories. GDP is not a good measure because it does not take into account the specific distribution of the incomes to the hands of individuals. They could only be going to few hands hence it does not measure the general welfare of the people.
Branson, W. (2005). Macroeconomic Theory and Policy. New york: Sage.