The economics of well-being.
Gross domestic product has long been the chief measure of national success. But there's been a lot of talk lately about changing that, from economists and world leaders alike. GDP is under siege for three main reasons. First, it is flawed even on its own terms: It misses lots of economic activity (unpaid household work, for example) and, as a single-number representation of vast, complex systems, is inevitably skewed. Second, it fails to account for economic and environmental sustainability. And third, readily available alternative measures may reflect well-being far better, by taking into account factors such as educational achievement, health, and life expectancy. HBR's Justin Fox surveys historical and current views on how to assess national progress, from Jeremy Bentham to Robert Kennedy to Nicolas Sarkozy. He also looks at where we may be headed. The biggest success so far in the campaign to supplant or at least supplement GDP, he finds, is the UN's Human Development Index-on which the United States has never claimed the top spot.
Justin
J
Fox
D004467:Economics; D059066:Gross Domestic Product; D006240:Happiness; D006801:Humans; D010549:Personal Satisfaction