Download Broader Measures of Progress J. Steven Landefeld, Director

yes no Was this document useful for you?
   Thank you for your participation!

* Your assessment is very important for improving the work of artificial intelligence, which forms the content of this project

Document related concepts

Economic bubble wikipedia, lookup

Business cycle wikipedia, lookup

Recession wikipedia, lookup

Post–World War II economic expansion wikipedia, lookup

Broader Measures of
J. Steven Landefeld, Director
“Response to the Rio+20 Mandate for Broader Measures of Progress”
High Level Forum Event for the UN Statistical Commission Meeting
February 25th, 2013
Broader Measures of Economic Progress?
▪ Recent Impetus for Broader Measures:
Rio +20
Housing and financial crisis
Great recession and slow recovery
Fiscal crisis
Increasing concentration of income
 Stiglitz report
▪ How Broad?
“National accounts should include elements that reflect economic welfare that can be
brought directly or indirectly into relation with the measuring rod of money” –Pigou
He emphasized that can might mean anything from can easily to can with violent
Progress on broader measures have waited too long (over 75 years!)
We need to set ambitious, but achievable goals
Broader Measures of Economic Progress?
▪ Long-Standing List to Choose From:
Energy and Natural Resource Accounts
Environmental Accounts
Distribution of Income, Consumption, and Wealth
Alternative Measures of Sustainability
Medical Care and Health Accounts
Real Government Output
Household Production
▪ Choices will depend on country priorities and
resources, but some degree of standardization and
comparability (SNA/SEEA, etc.) important
Broader Measures of Economic Progress?
▪ Challenges include:
Gaps in data
Lack of consensus on estimating methods
Fiscal crisis
Economic crisis
This stuff is really important with large economic and
political implications
▪ Big Bang or Incremental Approach?
 Current environment may suggest incremental approach with
extensions in key areas (w/double bang for the buck)
 What are some of these areas?
Growing or Shrinking Living
Source: BEA, Census
Growing but Slower
Source: BEA, Census
Alternative Measures of the
Purchasing Power of Households
Source: BEA
How Did We “Miss” the Housing Bubble?
Source: BEA, Federal Reserve Board, Standard & Poor’s
How Did We “Miss” the Stock Price Bubble?
Source: BEA, Standard & Poor’s
Where’s the Debt?
Total liabilities/total financial assets
Source: BEA
Investing For the Future of Just Keeping Up?
Source: BEA
Human Capital
Source: BEA, Christian (2012)
What is the Value of Household Work?
Long-Term Happiness and Real GDP
Source: BEA, University of Michigan, Veenhoven, R., World Database of Happiness, Distributional Findings in Nations
Happiness & the Financial Crisis
Unemployment rate
Gallup Well-being Index
Source: BEA, Gallup