Diskusi 4 Bahasa Inggris Niaga

1
NAMA : Komang Kian Pramantroa Wijaya
NIM : 042280382

After studying the fourth Session Topic entitled Real GDP per capita and standard of living and
also read the additional material. Please tell us your opinion on whether real GDP per capita is a
good measure of the standard of living.

GDP per capita is a useful measure as a summary indicator of a country's standard of

living, because Gross Domestic Product measures the market value of all final goods and
services produced in a country in a given period of time. Using GDP per capita as a means of
measuring living standards is useful because it is a quantitative measure that can be used to gain
a basic understanding of other qualitative factors that contribute to a higher standard of living,
such as well-being, quality of life, and happiness. Economists have a fairly developed
understanding of GDP per capita as it relates to welfare, and usually a better economic situation
is strongly correlated with a higher standard of living.

I don't agree that real GDP per capita is a good measure of living standards, because real
GDP per capita is not very useful on its own, so although it can measure living standards to some
extent, the scope is very limited because one cannot measure living standards only through
monetary terms. There are several economic and other drawbacks to using GDP per capita as the
single metric for assessing living standards. Real GDP per capita does not recognize aggregate
labor productivity in terms of unpaid labor. For example, the values of domestic work, childcare,
parenting, volunteer work, and community services cannot be included in real GDP per capita
because these forms of labor are unpaid, even though they have varying effects on living
standards. . Real GDP per capita also doesn't take into account the human condition because the
metric doesn't take into account the value of things like free time, environmental conditions,
congestion, and space.

SUMBER

Mardiani, Siti Era . 2020. Bahasa Ingggris Niaga. Tangerang Selatan : Universitas Terbuka.