quality of life
In developed countries,
quality of life (QOL) is increasingly measured as one of the most important
statistics in politics. It was developed largely to counter other measures that encouraged both
consumerism and
productivism by over-focusing on cash, price and exchange:
In the past,
GDP (the yardstick of economic sucess) was assumed to be a good approximation of
standard of living which was assumed to be a good indicator of quality of life and of its relative,
well-being. However its creators never advocated such usage.
A more common assertion in today's
welfare economics is that by
Amartya Sen that
free time is more directly correlated to quality of life than is any cashflow or service provision metric.
Recent studies by the
United Nations and by the
World Values Survey, also call the links betwen production/consumption and quality of life into serious question:
A 2005 study by the
Economist found that in 2005, Ireland had the highest quality of life in the world. Another by the
OECD studied whether declining
social capital was to blame for stalled quality of life increased in welathy countries over the last few decades.
In the UK, the prime minister's Strategy Unit published a
paper recommending policies that might increase the nation's happiness . These include using quality-of-life indicators when making decisions about health and education (go for the option that leads to greatest life satisfaction), and finding an alternative to gross domestic product as a measure of how well the country is doing - one that reflects happiness as well as welfare, education and human rights.
health,
mental health,
human capital,
social capital,
wealth,
well being.
[+] Position: The Econonomist - the effect of income on quality of life
"We find that GDP per person explains more than 50% of the inter-country variation in life satisfaction, and the estimated relationship is linear. Surveys show that even in rich countries people with higher incomes are more satisfied with life than those with lower incomes. In 24 out of 28 countries surveyed by Eurobarometer, material wellbeing is identified as the most important criterion for life satisfaction. However, over several decades there has been only a very modest upward trend in average life-satisfaction scores in developed nations, whereas average income has grown substantially. There is no evidence for an explanation sometimes proffered for the apparent paradox of increasing incomes and stagnant life-satisfaction scores: the idea that an increase in someone’s income causes envy and reduces the welfare and satisfaction of others. In our estimates, the level of income inequality had no impact on levels of life satisfaction. Life satisfaction is primarily determined by absolute, rather than relative, status (related to states of mind and aspirations). The explanation is that there are factors associated with modernization that, in part, offset its positive impact. A concomitant breakdown of traditional institutions is manifested in the decline of religiosity and of trade unions; a marked rise in various social pathologies(crime, and drug and alcohol addiction); a decline in political participation and of trust in public authority; and the erosion of the institutions of family and marriage. In personal terms, this has also been manifested in increased general uncertainty and an obsession with personal risk. These phenomena have accompanied rising incomes and expanded individual choice (both of which are highly valued). However, stable family life and community are also highly valued and these have undergone a severe erosion."
[+] Position: Quality of life must replace GDP as the measurement of sucess.
While important as an economic indicator, the only thing that
GDP really measures is throughput. Throughput does not make people happier or heathier, it just makes them busier. Ultimately, the most talented and employable people who seek quality of life are going to vote with their feet and move to places where
culture and
recreation are in abundance - and they will take the high productivity service industries with them.
