Question: GDP, One of the great Inventions of 20th Century!! The article emphasizes the importance of being able to measure an economy’s output to improve government policy Looking at recent news, can you identify one economic policy debate or action that referenced GDP?
The current pandemic swept all over the world, wreaking destruction on economies all over the world. As a result of the preceding predicament, most economies’ principal response was to restrict trading and prevent its spread. The measurement of an economy’s output may be regarded as one of the most accurate indicators of the need for a government policy measure in an economy. Before a government programmer is implemented, the GDP and inflation levels in the economy should be measured.
However, as a result of the same, the various economies were impacted by recessionary impacts, necessitating economic policy interventions. As a continuing measure, several governments implemented social distancing and lockdown measures within the economy, resulting in the shutdown of various revenue generating enterprises. Because it was an essential policy measure, the governing mechanism had no choice but to adopt it. The key economic fiscal policy measure pertaining to the GDP and inflationary situation in the post-covid-19 wave 1 was the inputs that were scaled by governments worldwide in order to lessen the effect of these and recoup the lost economic productivity.
Investments in the economy were undertaken in the form of government expenditure initiatives to boost small scale industries as well as bringing up parts of society that were severely impacted by the pandemic’s effects. Trillions of dollars in investments and policies were implemented with the goal of boosting the economy’s employment potential and improving its productivity. It can be seen that the key strategy that was implemented was to restructure the health sector and increase the performance of the healthcare industries in order to mitigate the consequences of the pandemic through adequate income allocation to the health sector. This was highly discussed because it was critical for the production of basic commodities such as sanitizers, masks, and medical equipment such as oxygen flow metres and ventilator systems.