Real GDP Per Capita and the Standard of Living
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- Опубликовано: 10 сен 2024
- They say what matters most in life are the things money can’t buy.
So far, we’ve been paying attention to a figure that’s intimately linked to the things money can buy. That figure is GDP, both nominal, and real. But before you write off GDP as strictly a measure of wealth, here’s something to think about.
Increases in real GDP per capita also correlate to improvements in those things money can’t buy.
Health. Happiness. Education.
What this means is, as real GDP per capita rises, a country also tends to get related benefits.
As the figure increases, people’s longevity tends to march upward along with it. Citizens tend to be better educated. Over time, growth in real GDP per capita also correlates to an increase in income for the country’s poorest citizens.
But before you think of GDP per capita as a panacea for measuring human progress, here’s a caveat.
GDP per capita, while useful, is not a perfect measure.
For example: GDP per capita is roughly the same in Nigeria, Pakistan, and Honduras. As such, you might think the three countries have about the same standard of living.
But, a much larger portion of Nigeria's population lives on less than $2/day than the other two countries.
This isn’t a question of income, but of income distribution-a matter GDP per capita can’t fully address.
In a way, real GDP per capita is like a thermometer reading-it gives a quick look at temperature, but it doesn’t tell us everything.
It’s far from the end-all, be-all of measuring our state of well-being. Still, it’s worth understanding how GDP per capita correlates to many of the other things we care about: our health, our happiness, and our education.
So join us in this video, as we work to understand how GDP per capita helps us measure a country’s standard of living. As we said: it's not a perfect measure, but it is a useful one.
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thumbs up because he took the time to point out the negatives
Just one negative though
Derek McGowan Another shortcoming of GDP is that it doesn’t recognize the value of caregiving. If someone is taking care of a child, that isn’t considered valuable and isn’t measured by GDP. That’s problematic.
It's his job !!! ,
J. Cloyd Isn’t it inevitably accounted for if we assume that the behaviour of care-givers affects the behaviour of other people? Other people (e.g. the breadwinner of a family) are only choosing to behave as they do economically because somebody else is acting as care-giver. If someone else was not acting as care-giver, they would have to dedicate less time to activities that are measured by GDP so as to take on care-giving duties themselves. The difference between the GDP contributed by a person who is working full time and the GDP contributed by that same person if they took on care-taking duties IS the effect of a care-giver’s work on GDP, no?
Poorly.
it's so refreshing how slowly he speaks compared to most people doig econ videos. it's almost like he doesn't make me want to jump out a window.
one cannot explain the concept better than this. You guys are doing a great great job !
In this video - which was made in 2015 - you stated that Nigeria had 80% of its population living on less than 2 dollars a day, which was unforunately correct. Today, only 5 years later, that number is around 43%, which means that it's down almost 50% of what it was! In just 5 years, that's an incredible progress!
Thansk for the video, awesome!
yes We can see Progress There Clearly but It is because of Inflation Also Cause we are Talking About 2$/day So we measure Conditions in all perspectives also
Where are you getting that data? If it is from the Nigerian government, it is obviously biased.
@@mirzaahmed6589 the Nigerian government doesn’t produce data but NBC does. It a non government organization. Nigeria poverty have decreased but the population have also grown a lot.
@@notanoob3920 REAL gdp would take inflation into account
loved the simplicity of your presentation. An average person can understand it. I am a CFP and I had difficulty in explaining as simple as this to my clients, as simple as what you just did , thanks
These videos are very good for people whose English is 2nd language. I really appreciate slow and very understandable speaking.
Economists graph everything, even happiness. Where is the love graph
Lool
how would you measure it?
3:56
How are Americans happy? Lol
good health, happiness can be accomplished through money but love isn't.
today i watched your videos and now, I think I have no need to take classes in school.
Thanks for making such videos.
well there is one more thing: as you said GDP can reflect how happy we are, if we compare how much more can we afford, and this will show, how much better the economy is. And sure, consumerism is what thrives the economy. But we are in a different status quo now... the more we spend, the more we produce, the more market competition... deteriorates our planet more and more. This is an "older" video... I am looking forward to see more videos and if the environment issue can fit (could be added) into an equation. Thank you, awesome videos, well explained! I am working on my thesis for my master studies and GDP is a big part of it...
I really enjoyed this video, since I understood complicated terms in a short span of time!
Thank you, my macro economics course starts soon and I understand the concepts well thanks to these videos.
Wonderful video highlighting both strengths and limitations of using Real GDP per capita to measure a country's standard of living. Clear explanation of concepts
y'all are awesome! I use your videos EVERYDAY in my classes.
Some prince in Nigeria still owes me a million dollars plus the one thousands dollars I sent him through Western Union. 10 years later I still didn't get my one million dollars!
You're such an idiot, greedy fool. Besides, aint you homeless?
Nigeria is poor shitty country.. There are
No rich prince
@@type2unsetdiabeetus33 LMAO you must be a dumbass .
uzoma ihebom your lack of grey matter is astonishing
I know this is just a joke but my dad legit got over a million dollars stolen from him...by not a prince, but the nigerian government itself...12 years on my side...
Excelent video extremely clarifying tumbs up👍
There ain't any channel in the youtube that can explain the economics as interesting as you do.Thanks for all your quality videos.👍
This is the best explanation one can ask for , very educative ,basic , without complications and on point . Thank you
Your videos are really good. Educational, keep doing the good work and also start making country-specific videos as well.
Thank you for your comment! We have some country-specific playlists.
India: ruclips.net/p/PL-uRhZ_p-BM6qwTvoo09a3ZB2WuZNQtr8
China: ruclips.net/p/PL-uRhZ_p-BM4vSTK6gU6sLqA7lPDbZIe5
and more
You can see these on our channel page.
-Roman
Thank you Mr. Alex for this enlightening video. Thank you very very very and very much!!
The speed of the explanation is perfect, the images and graphs used are really helpful, and the words used are simple and clear, which helps a lot for non-native English speakers.
I'm so happy these videos exist. My textbook is amazing and designed for self-studying but it really skimmed that part about how GDA = higher standards of living. It stated it but didn't attempt any convincing of it. Maybe more convincing would be available in later lessons, Idk. What I know for sure, however, is that now I can finally pass the lesson I got stuck in with a light and a satisfied heart.
As for economic growth, Joseph Stiglitz has come closest to the answer: impose high taxes on rent-derived income flows and gains on asset sales. At the same time reduce or eliminate the taxation of earned income, real capital goods and on commerce. Stiglitz has reminded us of the analysis provided over a century ago by Henry George. We should have listened to Henry George then, and his insights are in my view as important today.
This is very well explained, together with the previous one.
Everything's going alright with your videos.👍👍
You guys are great, thanks for the videos!!!!
Thanks for watching Camilo!
-Roman
more useful than my econ teacher, thx a lot
Thank you ,sir.I love all your videos.please carry on for us.Your university has taken a giant step to spread free education among all the people and you are doing a great job.So thank you once again.
The way you explained is much better than my professor. Now I have a better understanding of GDP. Thanks a million!!
I didn't understand GDP until I watched the last three videos. Thank you a lot!
I can't describe in words that how much these contents helped me, thanks a lot!
I love these videos! very informative and well-produced!
Thank you so much for your lucid explanation.
I think your videos so far what i have seen are way better than others! So kudos to you! Keep up the good work!
Thank you for this video. I needed a good and straightforward explanation of GDP, and your video did a great job explaining it.
U are the best. Am very much grateful.The concepts here are very much simplified
Thank you for sharing this. I like it overall as it is filled with many insights. But where it is filled with lies, I think you would be the better person to point them out
watching this a couple of years late from release but one of the best material for gdp!! I was struggling to find a decent web series about the same and accidentally stumbled upon this and boy was it worth it!! Thanks a lot for making this video series!!
You are a good teacher, and you gave relevant examples that aided my understanding. Thank you.
you are great .the way you explain is very nice . keep doing this and thank you for this knowledge .
I just started learning macroeconomics out of interest and curiosity, and I'm already in love with your videos. Subscribed!
Welcome to the wonderful world of econ! Let us know how it goes!
-Roman
Great video (series), easy to understand and enjoyable to watch. Keep up the good work.
you are best sir
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Many thx...
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This is really interesting! Thanks 🙏
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Very good explanation. Thanks a ton.
A very good explanation of the topic!!
Nicely explained.
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Awesome video.. the ones preceeding this video laid the foundation to understand this
I really enjoyed this video.Very clear and understandable ,thank you so much
One video leads to another. You guys just kept watching your videos. Very thankful for your work! I've learned a lot! :)
Great to hear! Thank you.
-Roman
Every African nation needs to show this to their people
Amazing instructors. Really enjoy the videos.
OMG I love the videos so much Alex thank you
thank you very much for giving the opportunity
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I like this videos. They assist in trying to understand how factors of macroeconomics works. I appreciate. I would like you to talk about how debt accumulation affects economic growth. Or refer the videos to me.
Thank you for the knowledge.
Thank you very much for the video, you're doing great. Its very informative and made it so easy to understand the economy.
i love these series of videos. helped me understand gdp more.
Thanks for your content is very help full for my studies
Median GDP per capita is much more useful. (Edit: I meant median income, which is how most people probably interpreted it =P)
This
That is indeed true, the median ignores the effect of the super-rich, while the mean includes the super-rich and thus overestimates the income received by the average citizen.
Exactly.
There is no such thing as median GDP per capita. When you calculate GDP you get a single number. When you get population, you get a single number. So for a given geographic area you get a single number. Probably you want something like median household income. Median personal income gets messed up in that in a lot of countries the median person would be a child with no income. But maybe median personal income of working age adults.
This is true. Median household income would be the statistic we are looking for.
Love the video, it's very insightful
These videos are awesome thank you very much for the good work guys
Excellent video. Clear explanation. Solid graphics. Good coverage of all sides of the topic.
I know I’m years late. But leaving a comment for the algorithm regardless. Cheers!
Much appreciated!
-Roman
Thank you for clear explanation. It is amazingly helpful for me to study economic by myself.
Hi professor these are the best videos, you are a True professor who teaches the hardest theories in simplest way.
I lile those videos very much, they are very useful and informative. Thank you!
Awesome videos and explanations.
Thank you for the video
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Fantastic stuff - thanks
Thank You Sir
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excellent videos. i am learning a lot. the pictorial part helps to understand things better. please put more pictures of goods to understand more clearly. its wonderful and now i am getting interested in economics.
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Thank you!❤
man, you are a blessing to society. thank you so much for the video. one thing that i never quite understand is the term "economy health". how exactly do you determine the health of the economy, what is the parameters?
Super helpful. Keep up the good work!
beautifully explained!
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Thanks for posting this video
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