Economics is based on a falacy. because economics says quality of life
is equal statistic called the Gross Domestic Product (GDP).
The GDP is soley an indication of economic productivity, and
in fact sometimes the quality of life declines
when the GDP increases. The Gross Domestic Product refers to the total
amount of goods and services produced. The falacy of equating the GDP
with the
quality of life occurs because because some things that increase the
GDP do not improve
the quality of life.
As an example, these
two fellows would probably have a higher quality of life if neigher could
afford mallots.
Certainly, if two countries use their surpluses to produce military equipment
the cost of the equipment increases the GDP,
then use the equipment to fight a war, then the quality of life in both
countries has declined. Another example is if, a country starts using its
surpluses to buy tobbaco products. The surplus goes into both cigarettes and
cancer wards, and the country's GDP goes up, but the main effect on the
country's quality of life is shorter lifespans, and people having to deal with
the horrors of chemotherapy.
Yet another flaw in using the GDP as an indicator of quality of life is that
part of the GDP reflects use of nonrenuable resources. It might be fun to use
today, but we won't be able to use it tommorrow! Also if we use $100 of
fossil fuels today, in 2010, it will be harder and more expensive to get,
maybe costing $300. The $200 increase would be reflected in the GDP, but
not in the quality of life. In economics, as in everthing else, it's a good
idea to
As an example, these
two fellows would probably have a higher quality of life if neigher could
afford mallots.