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Monday, January 16, 2017
Measuring GDP Minus Health Care and Military Expenditures
The problem with the health industry is that it is a negative indicator if a country were to measure true growth. Healthcare is considered an industry, but its growth depends on an a steady increase in sickness. An unhealthy population is an economically unproductive population. Every penny spent is to bring the population to normal functioning human wellness, which would make it a negative mark in the determination of economic performance and potential.
The military operates the same way, too. It is about destruction. Every penny spent is negative because war does not produce anything of economic value and results in severe economic losses from the wars in the form of reconstruction, demolition, infrastructure repairs, dead and wounded, orphans, veterans, social costs… So technically every penny spent on the defense department is a negative mark. Healthcare and Defense make up two of the largest "industries" in the US.
If we examined these as negative indicators to measure a country's true value and growth, while adding a domestic satisfaction number that would include basic literacy, critical thinking skills and each antidepressant sold per capita as a negative indicator in the formula, it would show an un-viable, unsustainable system, just like the nuclear industry. There is no growth, just smoke and mirrors.
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