GDP is unscientific and unfair for poor people.

[chang]

Economic theory should not be regarded as a theory of how to increase
demand, investment, employment and GDP. It should be considered as a theory
of how to raise the living standards of people, especially poor people, and
also a theory of how to increase the world wealth and resource. Although war
is generally thought to be able to decrease unemployment and increase GDP and
economic growth rate, we should not say that wars are good for the economy.
It is because wars destroy wealth and resource and lower the living standards
of people.

Nowadays, most countries all over the world use Gross Domestic Product to
judge the economic growth of a certain country and, according to this GDP,
calculate this country's economic growth rate. This method of calculation is
really unfair for poor people, for it fails to judge whether the poor
people's living standards have been raised. For example, the yearly economic
growth rate of some countries has reached 9-10 percent, but their poor
people's living standards haven't been raised. There are still a lot of
people suffering from cold and hunger. They can't afford to send their
children to school, and, as a result, too many children are deprived of
education. Therefore, a new economic theory is badly needed to judge a
country's economic growth. My article "On The Development of Social Economy
<http://sites.netscape.net/juchang/>" has established a set of complete
economic theories and also a new model of economic growth, by means of which
we will be able to judge a country's economic growth accurately and fairly.
And I also argue that we should use the living standards of the poor people
and the sufficiency of the first and second grade consumption goods as the
criterion to judge the economic situations of one country and the
achievements of its government. Only when poverty is eliminated, may we say
that the social economy is developed. Only when the living standards of the
low-income people is improved, will we be able to take just and accurate
measurement of the economic growth of a country. So, the economic growth of a
certain country can't be measured by GDP. GDP is unscientific. The
measurement of social economic development by means of GDP can only lead to
the Military Keynesianism, lead to war.

Consumption and demand can be divided into four grades. The first grade is
necessary consumption of education, clothing, food, housing and transportation.
The second grade is ordinary consumption, which means buying some more clothes
and purchasing TV sets and washers, etc. The third grade is extravagant
consumption, which means going to hotel and restaurants, taking cars and going to
dancing-halls, etc. The fourth grade is over-extravagant consumption.

Sincerely,
Ju-chang He

SHENZHEN, P.R. CHINA
Welcome to My Homepage
<http://sites.netscape.net/juchang/>