Why can GDP measure a country's development level better than per capita GDP?

It must be better than GDP to measure the level of industrial production, agricultural supply, the proportion and quantity of professional nursing for the elderly in different degrees, the level of primary education and vocational education, the level of higher education and scientific and technological innovation, the degree of polarization between the rich and the poor, the level of medical and health care, the level of infrastructure, the degree of social harmony and the proportion of crime, the convenience of public services, and the sustainable development of the whole society.

First, China's GDP accounting methods mainly include: production method, income method and expenditure method. (1) The production method first calculates the total output and intermediate input of each industrial sector in the national economy, then subtracts the intermediate input from the total output to get the added value of each industrial sector, and then summarizes it to get GDP. The calculation relationship is: total added value = total output-intermediate input. (2) The income method is to calculate the added value of various industrial sectors from the perspective of various elements involved in the initial income distribution (that is, income sources), and get the GDP after summary. The calculation relationship is: total added value = workers' remuneration+net product tax (product tax-production subsidy)+fixed capital consumption+operating surplus.

(3) The expenditure method directly summarizes the final consumption of various goods and services in the total domestic output from the perspective of the use of final products by the whole society, and obtains GDP.

Second, the calculation relationship is: total added value = final consumption expenditure+total capital formation+main limitations of net export GDP accounting:

1, without considering the relationship between economic process and resources and environment, ignoring the input cost of resources and environment behind economic output and the consumption and destruction of resources and environment by economic activities.

2. Only the total value of the final products that can be used for final use in the current period is given, but the specific product composition cannot be explained. Nor can it reflect the total welfare that citizens of a country can finally get (such as whether leisure time has increased or decreased) and the differences between different ethnic groups in enjoying the final products and obtaining benefits. The accounting results can not be directly used for the analysis of social problems such as quality of life and distribution equality.

3. The accounting scope is not comprehensive enough, and economic activities such as illegal economy, underground economy and informal economy are not accounted for, and self-sufficient services within the family (such as housework) are not included. 4. The accountant focuses on "tangible" things (such as factories and equipment) and ignores "intangible" knowledge-based economic components (such as technological innovation and brand effect).

Third, the method of improving GDP accounting mainly starts with expanding the national economic accounting system itself, including resource and environment accounting, population and labor accounting, health accounting, tourism accounting and emerging economic accounting. See China National Economic Accounting System (20 16) for details. Of course, the most important thing is to combine GDP indicators with other economic indicators (such as Gini coefficient). ) and the ultimate goal of accounting is to improve social welfare.