GDP and Quality of Life

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GDP and Quality of Life
Measuring What We Care About
The Center for the Advancement of the Steady
State Economy
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Outline

• History of economic growth and GDP
• Critical view of GDP
• Alternative measures to supplement GDP
• Recent initiatives
• Barriers to change
• Path forward

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What Is Economic Growth?
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What Exactly Is GDP?
GDP C I G (X-M)
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History of Growth in GDP
World GDP (1990 millions of dollars)Source
Angus Maddison
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History of Growth in GDP
Average World GDP per Capita (1990
dollars)Source Angus Maddison
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Policy on GDP Growth
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Outline

• History of economic growth and GDP
• Critical view of GDP
• Alternative measures to supplement GDP
• Recent initiatives
• Barriers to change
• Path forward

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Critique of GDP
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GDP and Happiness
Happiness Index
Source Inglehart and Klingemann(2000)
Income per Person ()
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Outline

• History of economic growth and GDP
• Critical view of GDP
• Alternative measures to supplement GDP
• Recent initiatives
• Barriers to change
• Path forward

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What is Quality of Life?
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U.N. Human Development Index
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Ecological Footprint
Source Global Footprint Network
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Genuine Progress Indicator
U.S. GPI per Capita Source Redefining Progress
40,000
30,000
GDP per Capita
GPI per Capita
20,000
10,000
1950
1960
1970
1980
1990
2000
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Calvert-Henderson Indicators

• Education
• Employment
• Energy
• Environment
• Health
• Human Rights
• Income
• Infrastructure
• National Security
• Public Safety
• Recreation
• Shelter

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Happy Planet Index

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Outline

• History of economic growth and GDP
• Critical view of GDP
• Alternative measures to supplement GDP
• Recent initiatives
• Barriers to change
• Path forward

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Integrated Environmental andEconomic Satellite
Account

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OECD World Forum
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EU Conference Beyond GDP
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Bhutans GNH
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Stiglitz Commission
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Outline

• History of economic growth and GDP
• Critical view of GDP
• Alternative measures to supplement GDP
• Recent initiatives
• Barriers to change
• Path forward

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Inertia
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Paradigm of Growth
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Powerful Interests
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Outline

• History of economic growth and GDP
• Critical view of GDP
• Alternative measures to supplement GDP
• Recent initiatives
• Barriers to change
• Path forward

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Overcoming Inertia
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Changing the Paradigm
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Aligning the Efforts
Maybe changing GDP isnt that hard.
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Lets Get on with It!
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The Center for the Advancement of the Steady
State Economy
Take a Position! www.steadystate.org