Happiness isn't enough to replace GDP
Subjective well-being is not a reliable indicator of true, objective well-being
THE idea that data on happiness and well-being can be used to guide government policy has steadily gained popularity over the past decade. But as we seek ways to replace, or at least complement, GDP as a measure of national success, we risk falling into old traps.
One measure that is gaining popularity all over the world is particularly problematic. It has long been accepted that GDP is a woefully inadequate measure of national well-being. As Bobby Kennedy put it as far back as 1968, this type of macro-economic indicator "measures everything, in short, except that which makes life worthwhile".
Since then, the Beyond GDP movement has gained momentum. Canada, for example, has introduced an Index of Wellbeing, and the OECD has organised the Better Life initiative. In the UK, the Office for National Statistics is leading the Measuring National Well-Being programme, and has developed a well-being framework that includes multiple dimensions of life, including health, relationships, work, the natural environment, and political participation.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Columns
To hold or sell deeply undervalued stocks, leave it to fate
Why forecasters are divided on interest rates
Wider boost for Biden’s global democracy promotion agenda
Investors should learn about psychological biases
Banks, at least, are making money from a turbulent world
Never mind those EVs – oil demand keeps growing