Question: disasters andndash such as bushfires floods earthquakes terrorist attacks and...
Disasters – such as bushfires, floods, earthquakes, terrorist attacks and epidemics/ pandemics – obviously have a huge impact on society and our economy.
In this article, economist Janine Dixon looks at how to measure the economic cost of Australia's summer bushfires and the effects on GDP.
“Take care when examining the economic impact of fires: GDP doesn’t tell the full story”, by economist Janine Dixon, The Conversation 17 Jan 2020
Answer the following questions based on your reading of the article.
What are the shortcomings of GDP as a measure of wellbeing highlighted by the article? Explain in 100 words or less (2 marks). Give some examples of how GDP does not capture the full extent of the negative impact of disasters. (2 marks).