GDP - THE MOST IMPORTANT INDICATOR IN THE WORLD?

The pursuit of GDP growth can harm citizens. Citizens prefer lower prices, GDP grows with inflation. Consumers want products with a long life, GDP grows by production. Citizens need to save, GDP grows by shopping.

For decades it was believed that the level of GDP also determines the prosperity of citizens. But the economy is not just about production.

Until a brilliant economist is born and proposes a new indicator, the Prosperity Index can be used. The benchmark will be the country with the best score in the relevant index. The individual indices will be decreasing coefficients. Countries with the same result will have a coefficient of 1. Countries with a worse result will have the corresponding percentage. The resulting Prosperity Index will be the average of all 30 observed coefficients and will show the percentage of underperformance relative to the optimal economy, including in individual areas.

Individual coefficients:

1. How many litres of milk can be bought at the median daily wage

2. How many litres of milk can be bought with the median daily income

3.-24. The same coefficients for meat, vegetables, fruit, m² of housing in the largest city, m² of photovoltaics, m³ of water, shoes, clothes, fridge, washing machine, car

25. life expectancy

26. number of doctors per 1000 inhabitants

27. number of hospital beds per 1000 inhabitants

28. percentage of employment

29. national debt

30. GDP of the country

The indices can be added or subtracted.

Example - Slovakia - 5 sub-indices

Life expectancy: 78,07 years - Monaco 89,4 years = 87%

Physicians density: 3,42 physicians/1,000 population - Cuba 8,42 physicians/1,000 population = 41%

Hospital bed density: 5,8 beds/1,000 population - Monaco 13,8 beds/1,000 population = 42%

Public debt: 50,9% - Brunei 2,8% = 51%

Real GDP per capita: 32,730 USD - Monaco 115 700 USD = 28%

87+41+42+51+28= 249 : 5 = 49,8 % - Slovakia Index prosperity (without consumer basket)