A big problem with GDP:
GDP cannot answer such essential questions as whether we are consuming too much of the wrong things or saving too little. To any government statistician tallying GDP, $100 spent on textbooks is sadly no more valuable to society than $100 spent on cigarettes. Americans spend more than $80 billion on smoking each year and an estimated $160 billion on the health care costs related to smoking-induced illnesses. Together that’s about 1.5 percent of American GDP—nothing to boast about.
A conference at the UN just produced the first World Happiness Report. The trend could spark changes in the US:
Health policies, particularly those affecting the availability of mental-health services, would likely look far different if misery were factored into the cost-benefit analyses now measured solely in dollars. In this country, the obvious case for instituting family-leave, sick days and vacation policy could finally be recognized. Governments would have the numbers they needed to craft policies that promote strong social connections and altruism, both of which are associated with happiness.
Ronald Bailey is wary of the report.
The Dish 