GDP †A Gross Deception

Capitalism concentrates on toil of wealth more than than distri neverthelession of wealth to satisfy the conducts, which is secondary in their view. Therefore, the capitalist frugal system has one aim, which is to increase the countrys wealth as a whole, and it kit and caboodle to arrive at the highest possible take aim of harvest-homeion. It considers that the achievement of the highest possible level of welf atomic number 18 for the members of high society will come as a pass of increasing the field of psychoanalyse income by bringing up the level of production in the country, and in enabling individuals to be able to take the wealth, by beingness go away free to work in producing and possessing it.So for capitalists the economy does not exist to satisfy the require of every individual, rather it is foc apply on significant the needs of the wider community by raising the level of production and increasing the populational income of the country. It believes that b y means of the availability of the national income, the distribution of income among the members of society occurs, by means of freedom of possession and freedom of work. So it is left to the individuals to obtain what they can of the wealth, everyone according to what he has of its productive factors, whether all(prenominal) the individuals or only some individuals are satisfied.This is the so called trickle-down effect, a instanter-discredited system of distribution which h experients that the concentration of wealth in a few detention benefits the poor as the wealth necessarily trickles down to them, mainly through employment and as a result of investments made by the wealthy. In most cases, this policy failed, as the benefits were pocketed by a few. GNP is used widely by the capitalist nations as a treasure of descend production of all goods and services produced in a nation (usually annually) and primal to a governments national income accounts.GNP was introduced during W orld fight II as a measure of wartime production capacity, since then the piggy National Product (since changed to clear Domestic Product gross domestic product) has become a nations foremost indicator of economic progress. Yet the GDP was never think for this part. It is merely a gross tally of products and services bought and sold. However it is now widely used by policy makers, economists, international agencies and the media as the primary(a) scorecard of a nations economic health and salubrious- being. Yet in this role it has more serious flaws. 1.The GDP ignores everything that happens outside the realm of monetized exchange, regardless of its grandeur to well-being and the society. Hence values (humanitarian, ethical, spiritual) other than material values go entirely ignored. 2. The GDP records every monetary transaction as positive, so the costs of social decay and natural disasters are tallied as an economic advance. For example the terrible effects of crime are r ecorded positively as adding billions of dollars to the GDP due to the need for locks and other security measures, increase police protection, property damage, and medical costs.Hurricane Andrew was a disaster for Southern Florida USA, but the GDP recorded it as a boon to the economy of well over $15 billion. 3. GDP ignores the drawbacks of living on foreign assets. Where governments open increased their spending by acceptation from abroad, this raises the GDP temporarily, but the need to repay this debt becomes a growing burden on the national economy. This downside of borrowing from abroad is not reflected in the GDP. 4. The GNP was turned into the GDP a change that was deceptive and exploited by the Capitalist nations.Under the old measure, the Gross National Product, the earnings of a capitalist multinational pissed were attributed to the country where the firm was owned and where the profits would eventually return. Under the Gross Domestic Product, however, the profits are attributed to the country where the factory is located, even though the profits wont stay there. This accounting shift has deceptively turned many struggling nations into statistical boomtowns. Statistics which are used in aiding the push for globalization and free trade.Conveniently, it hides a basic fact that the western Capitalist nations are walking off with the resources of poorer nations and calling it a gain for the poor. 5. Above all GDP ignores the distribution of income. In effect the GDP hides the fact that a rising tide does not lift all boats. From 1973 to 1993 in the USA, period GDP rose by over 50 percentage, wages suffered a decline of almost 14 percent. Meanwhile, during the 1980s alone, the top 5 percent of households increased their real income by almost 20 percent. Yet the GDP presents this enormous gain at the top as a philanthropy to all.Furthermore the average number of poor citizenry averaged more than 30 million bulk over the last 40 years in the US, with an average of 15% of the population being poor. In the meantime, the gross national product continued to increase drastically, over the same period. The GDP grew from $four hundred billions to $10 trillions from 1959 to 2000. This very large increase in the national product did not contribute to the resolution of meagreness. More than 30 million people continue to be poor. Hence Capitalism superbly increases the production of products and services, and consequently wealth.However this completely fails to resolve the poverty of the individuals. The number of poor people continues to grow. In reality therefore GDP as a measure of a nations economic well being is sincerely a deception. It begins to explain why people feel increasingly huffish despite official claims of economic progress and growth. In Islam, the economic caper is focused on distributing the means of satisfaction for individuals i. e. the distribution of the funds and benefits to the members of the nation or p eople, not on the needs which the nation or the people require without having any regard to every individual within the nation.In other words, the problem is the poverty which occurs to the individual not the poverty which occurs to the nation. The name of the Islamic economic system is focused predominantly on satisfying the basic needs of every individual, not the study of producing economic commodity. Islam makes the face of study, the basic human needs of man, as a human being, and the study of distributing the wealth to the members of society to guarantee the satisfaction of all their basic needs. hostile capitalism it is aware that the treatment of the poverty of a country, through raising the level of production, does not solve the problem of poverty for individuals. Rather, Islam advocates the treatment of the poverty problems of all the individuals, and the distribution of the wealth of the country among them by addressing their basic needs first, thus motivating all the people of the country to work in increasing the national income.