Friday, December 23, 2011

My dear GDP


Gross domestic Product (GDP) is a woman whom all oligarchic noble souls around the world thought to have understood in the most profound sense. But has there been anyone who can claim to have fully understood woman? These souls would gaze for hours, days, even years at this creation of awe-inspiring mystique and come out claiming to be triumphant but these claims are soon shrouded in another veil of mystery.





GDP of a nation is the market value of all final products and services produced in a specified amount of time. I will not engross in all sorts of formulas and different methods to evaluate since I am concerned with abstract belief of GDP as a measure of welfare. Well the generally held idea is – GDP serves as a measure of economic growth which subsequently could be assumed to be a measure of number of jobs, living conditions, health and all other. As GDP increases, the number of products and services consumed increases and to produce those products and services, human resource increases, consequently welfare of nation. This is what is believed.


Let us see some other views of GDP which I think are left out and will never be in common discourse or mass media. Before proceeding, we take account of three things – one is population increase, second is blind use of technology to increase profit i.e. to reduce the input cost for a product and third one I would disclose later. In fact I would discuss the last one primarily and then relate to the above two. You see, when we say the total number of products and services consumed, we do not take into consideration whether all products and services are equally distributed among all of a nation. Irrespective of high numbers, GDP can present strange figures. For example, let us consider a hypothetical condition where there are 100 persons in a closed boundary at a specific time. If these persons consume equally all products and services, say 1000 such entities, than the GDP calculated on this account would be same as when 20 people consume 80% of all entities and 80 people consume 20% of all entities. Or in simple words if 100 consume equally 1000 entities  and we say GDP comes out to be X, on the other hand, if 20 consumes 800 entities and 80 consumes 200 entities and we conclude GDP to  be Y, then by current standards, both are equally benefitted states and welfare of all citizens is counted to be same. Let us say the first case of equal distribution has GDP X and second case has Y, where number of consumed entities are now not the same as before but population is same, and X < Y then naturally second nation is the one with more welfare and more better standard of living. You can see a perfect example in a state of India where GDP of that state is in two digits, and is kind of most industrial and developed state, but its people and specifically children have undernourishment and malnutrition level comparable to that of Ethiopia. Let me make it clear that I have no intention of favouring equal distribution of all goods manufactured in a state to its people by the State. It is no better than what is currently in practice. This example is just to reflect the flaw of measuring things. I favour that we all should share the means of production, that is abolition of private property, and products of the labour should be distributed in the proportion one has done labour. Because if you assume that state should control the means of production and provide the redistribution or equal distribution of all products then it will again result in few controlling all things besides inappropriate distribution of products of labour. When there is state, there is no freedom. Now we can relate the first two causes as I discussed before and I will repeat what I have just said with those two causes.


Corporations boast of themselves as the greatest employer, as if, if they were not there whole earth would have starved to death. Well they control most of the means of production with weird laws and certainly we are doomed if these laws hold. With these laws in place, they call others to work on their means to produce and they proclaim it to be employment. Grandness of scale hides the stupidity of endeavour. I mean things are given values with no labour behind them but obviously a tag of title with the name of owner. An individual holds immense land area, does no labour on it, but yet the title gives him the privilege to enjoy the fruits of other's labour. While who works on it, due to lack of means of production, although he produces the real value, is not given the share of value which he produces, but only a meagre part, the rest contributes to the surplus value earned by owner. So did you get what is the real flaw in the laws we make? But this is almost ignored all together as if title is only measure of all that is genuine. Do titles exist in reality? It is human made to protect what was once acquired with force, not by our generation, but by some of our powerful ancestors. And this gives an insight into the birth of inheritance whose biological implementation was made a law in the material world, of course drawing analogy, which humans are so good at. Very peculiar type of categorization! Okay! Let’s get further.


With this systematic machinery in place they now seek to focus on profit or surplus value. Profit by any means! Their strategy is to develop new technologies, inventions claimed as miracles to help humankind, which could increase their profit in two ways. Let me make it clear that I am not against technology. I am only discussing how and why of capitalist's motive of discovering new technologies. In fact technology is the only tool by which humans can tackle Nature. One way is making an individual produce more value than it is paid back to him. In simple words, he now does the work which was done previously by more number of individuals but is paid little or no more than before. You can check the statistics for that. Now those capitalist would use that surplus profit, a major part to hoard and a necessary part to develop technology which would further decrease the workforce in comparison to proportion of population rise and increase the profit for further future endeavour. And yes how can I forget the tiny humanistic veil which they wear by doing the charity! So in a way they do two contradictory things. He, on one hand, wants the tremendous amount of products and services to be utilized in the market whereas on the other he does not provide that much of capital for the consumers to keep the cycle of consumption-production going. Ultimately he is marred by overproduction, with the problem of plenty, with profits declining, stagnation being the final result but his dearness for hoarding does not cease. If it cease how will he be called successful? How will he differentiate himself from the herd? How will he do charity which he assumes will magically solve all problems one day and secure his place in the eyes of God? How will he show his moral conscience in the midst of careful plundering by law? How can he challenge his own formula, a hard earned and firmly established, to eternal success?


In this seemingly glorious turmoil, the basic rule of making profit is further enhanced by branding one type of labour as inferior. I mean to say that one doing a physical labour of 16-18 hours a day is assumed to have spent no energy in making a useful combination of his nerves and muscles, whereas a company executive working the same number of hours is an extremely hard working individual. Consequently he get paid enormous, exorbitant sums of money based on his intellectual work whereas physical labour is rejected outright as of inferior quality as if it does not sucks energy of humans. You see, this also contributes to the greatness of few. I accept that intellectual level of an individual adds to his completeness but verily it does not mean labour can be weighed differently on the basis of its type. Both intellectual and physical labours involve complex work of nerves and muscles and therefore I firmly believe that means of production should be shared by all whereas products of labour should be distributed in proportion to an individual's labour. That is what Communism is and none of the silly beliefs you get to hear from half educated individuals, guessing souls and living in the imagination of their own and calling Communism as idealism.


Though I would like to write more but it has already passed my limits. So I would conclude my discourse with few observations of desperate efforts which are made to increase that highly respected figure called GDP. Oh I can see a message in my cell phone urging me to answer the capital of India. Two options for my convenience!

1. New Delhi
2. New York

And it gives me a grand chance to win 2 ounces of gold. What should I do? Should I try my luck, my fate? That same merciful fate of which I talked in my post "My revelation not by God but by myself- Part 2". Same fate which arises out of the truth of God and the latter has its origin in error as I proved in that post. But what will happen if I apply my intellect in answering that question which regularly pops up on my cell phone screen? Nothing but I will consume a service which contributes to GDP, a measure of welfare. Oh I am doing welfare of so many! Don't stop me! Whatever resources I use to do this welfare is less. See how beautifully we do welfare by consuming products which are deliberately made of substandard quality so that they die well before their natural life to keep up the GDP figure. How much benevolent we become when we throw a reusable and working product to do the welfare of others by the way of GDP. Really, how much intelligent we are when we buy things we don't need to nourish GDP. And I can see those so called leaders, working relentlessly, day and night, just for our benefit, to raise those GDP figures, for our well being. Truly speaking, it brings tears to my eyes hearing of their sacrifices. How shall I repay them? This question strikes me constantly and each time with renewed vigour.              

3 comments:

  1. I think one of the biggest challenges for humans in this century will be to let go of the meaningless concepts of GDP and economic growth. I've heard there are other, more accurate ways to measure welfare and the economic well-being of society, but I can't remember what they are called.

    Anyway, nice post, which deals with a lot of current issues and misconceptions.

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  2. Thanks again..I would not have written any post if I had not read yours.

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  3. Feels good to know that I've inspired you to start writing. It's a pleasant experience, whether it's to vent frustration or just to ramble about your thoughts.

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