FINANCIAL CALCULATIONS

Financial Calculations

Financial Calculations

The SAVINGS is a sum of the monetary value of what has been produced in the nation in the past year. The formula for calculating the SAVINGS ignores a large percentage of the activities that transpire in the nation's personal. The formula ignores several things as work done in the home and activities in the underground personal. In general, the SAVINGS includes several items that in reality do not indicate the nation's economic level while excluding a large proportion of the activities of the nation (Barchet, 2007).

The SAVINGS does not include several things that greatly affect the nation's economic standings. The formula does not consider these things simply because they cannot be measured with any accuracy. The work done in the home affects the welfare of the personal because it takes time to care for a house, time that an individual could be working. So in essence, an individual pays themselves to for housework. Also, the underground personal encompasses a considerable amount of the transactions in the personal. This underground personal consists of illicit transactions and the legal ones that cannot be traced (Barchet, 2007).

SAVINGS does not include the ecological damage rendered every day by humanity. The pollution caused by everyday life such as trash and the pollution caused by factories and such all dampers the economic standings of a nation. While several immeasurable items are left out of the calculation of SAVINGS, a few things are included that do not necessarily need top be. When a disaster strikes a community, the costs of rebuilding are counted in the SAVINGS. It should be counted because it causes work for some but it also is hurting others. In summation, SAVINGS is not a competent ranking of the nation's economic standings. In the determine of SAVINGS, there are ...