31 Oct '16, 7pm

Per capita income is sometimes a poor indicator of economic well-being. (See: Singapore and Norway.)

Per capita income is sometimes a poor indicator of economic well-being. (See: Singapore and Norway.)

We now have a new effort to solve these problems. Two Stanford University economists — Charles I. Jones and Peter J. Klenow — have devised a way to relate a nation’s economic well-being to four factors: 1) consumption per person, adjusted for inflation; 2) inequality, reflected in differences of per-person consumption; 3) health, expressed as life expectancy; and 4) leisure time, derived by subtracting adults’ working hours from total hours. The result: a single number that supposedly reflects a country’s overall welfare.

Full article: https://www.washingtonpost.com/pb/opinions/how-should-we-...

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