Robert F.Kennedy once said: "Gross National Product measures everything, except that which makes life worthwhile."
Almost every country in the world uses GDP – Gross Domestic Product – to measure its success and social progress. But does GDP really capture what is really important to us? Does it measure what really matters?
Rises in GDP over the last thirty-five years have not resulted in increased human well-being. Once we’ve reached a certain level of material stabilitiy and comfort, increases in income don’t make us any happier. What’s more, by focusing so narrowly on growing GDP, we’ve increased inequality between the rich and poor, and are causing irreparable damage to the natural environment on which we depend.
A growing number of academics and politicians have called for a new measure of progress, and nef has responded with the creation of National Accounts of Well-being.
National Accounts of Well-being uses comprehensive data from a survey of 22 European nations examining both personal and social well-being. Personal well-being describes people’s experiences of their positive and negative emotions, satisfaction, vitality, resilience, self-esteem and sense of purpose and meaning. Social well-being is made up of two main components: supportive relationships, and a feeling of trust and belonging. Together they form a picture of what we all really want: a fulfilling and happy life. With National Accounts of Well-being, policymakers have a new compass to guide us.
Read more: National Accounts of Well-being | the new economics foundation
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