28 Scientific American, August 2020
SOURCES: WORLD BANK (GDP data); U.S. CENSUS BUREAU (inequality data);^ORGANIZATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT (Better Life Index data)Graphic by Amanda Montañez(Mis)measuring Well-Being
Gross domestic product, or GDP, measures the total quantity of goods and services produced in an economy in a certain period,
usually a year. Though commonly used to indicate how well an economy and society are doing, it is merely a measure of market
activity—no more. Since the Great Recession of 2008, a global movement has emerged to replace the GDP with a “dashboard”
of indicators that can better help steer countries toward a healthier and more sustainable future.QUALITY OF LIFE
The Organization of Economic
Co-operation and Development
(OECD) lists 11 indicators for the
quality of life. This chart compares
the performances of two OECD
members on these metrics. Although
per capita income is far higher in the
U.S., New Zealand scores better on
the quality of environment and health,
life satis faction, and a sense of
community and civic engagement.FAIR SHARE
The GDP per capita is obtained by
dividing the GDP by the population
of a country and can increase even if
the quality of life of most people in
a country worsens. A key indicator
of the divergence between GDP
and social well-being is inequality.
In the U.S., for instance, the GDP has
increased steadily since the 1960s,
but so has inequality. The three richest
men in the U.S. already own more
wealth than the bottom half of the
population combined, and the
pandemic is aggravating the disparity.1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 202010 9 8 7 6 5 4 3 2 1 0 1 2 3 4 5 6 7 8 9 100.3250.3000.3500.3750.4000.4250.4500.4750.5005
010152025303540455055601960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020U.S. GDP per Capita, 1960–2018U.S. Inequality, 1967–2020U.S. New ZealandNo data
availableHousing
Income
Jobs
Community
Education
Environment
Civic engagement
Health
Life satisfaction
Safety
Work-life balanceBetter Index Score BetterData-collection
methodology
changedIncome question
was redesignedThousands of U.S. Dollars(current value)Gini Coefficient8.5 6.2
4.3
8.0
8.9
6.9
8.5- 3
9. 5
8.9 - 6
5.9 - 0
8.4
6.3
6.8- 8.9
- 4
- 5
6.0 - 0
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