I will advance the argument that the Human Development Index (HDI) is a better measure of economic performance than gross domestic product (GDP) per capita . By saying that the HDI is a better way to measure economic performance, I mean that because the HDI highlights the trend between longevity, education and economic growth, it calculates a better analysis of an economy (Costa, Steckel 1997, p . 71). In contrast, GDP per capita represents only the gross domestic product without paying any attention to other factors in the economy (Hawthorn, Sen 1997, p. 60). That said, my thesis states that the HDI is a better measure of economic performance because it considers significant factors that play an important role in an economy, namely longevity and education; whereas GDP per capita only considers gross domestic product, which is too narrow a calculation to allow for adequate analysis. As mentioned above, there is a trend between longevity, education and economic growth in an economy, which means that this trend is essential to understanding an economy and its performance because these aspects are all interconnected. First, people's longevity is vital in a prosperous economy because economic growth depends on the health and skills of the people who work and manage it (Costa, Steckel 1997, p. 47). For example, the economic performance of an economy is slowed down when the health of a large fraction of the population is very poor because in that case the population is too unhealthy to increase productivity and production (Costa, Steckel 1994, p. 33 ). Furthermore, in this context, when the population cares about their longevity and well-being, they take further measures to ensure their well-being by spending on... half paper... on the economy, which concludes that the HDI is a better option to measure the economy by economic performance because it is much less exclusive as it considers the vital factors of longevity and education. Works Cited Costa, Dora L. and Richard H. Steckel (1997): Long-Term Trends in Health, Welfare, and Economic Growth in the United States, in: Richard H. Steckel and Roderick Floud: Health and Welfare during Industrialization, Chicago , IL: University of Chicago, pp. 47-89. Hawthorn, Geoffrey and Amartya Sen (1994): Lives and Capabilities, in: Hawthorn, Geoffrey and Amartya Sen: The Standard of Living: The Tanner Lectures, Clare Hall, Cambridge, Cambridge, United Kingdom, University of Cambridge, pp. 20-38. Nelson, Richard R. and Edmund S. Phelps (1966) Invest in Humans, Technological Diffusion, and Economic Growth, in: American Economic Review, pp.. 69-75.
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