Www.bea.gov Broader Measures of Progress J. Steven Landefeld, Director “Response to the Rio+20...
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Transcript of Www.bea.gov Broader Measures of Progress J. Steven Landefeld, Director “Response to the Rio+20...
www.bea.gov
Broader Measures of Progress
J. Steven Landefeld, Director
“Response to the Rio+20 Mandate for Broader Measures of Progress”
High Level Forum Event for the UN Statistical Commission MeetingFebruary 25th, 2013
www.bea.gov
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 straining.
▪ Progress on broader measures have waited too long (over 75 years!)▪ We need to set ambitious, but achievable goals
2
www.bea.gov
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 Education Real Government Output Household Production
▪ Choices will depend on country priorities and resources, but some degree of standardization and comparability (SNA/SEEA, etc.) important
3
www.bea.gov
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?
4
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Growing or Shrinking Living Standards?
5Source: BEA, Census
www.bea.gov 6
Growing but Slower
Source: BEA, Census
www.bea.gov
Alternative Measures of the Purchasing Power of Households
7Source: BEA
www.bea.gov 8
How Did We “Miss” the Housing Bubble?
Source: BEA, Federal Reserve Board, Standard & Poor’s
www.bea.gov 9
How Did We “Miss” the Stock Price Bubble?
Source: BEA, Standard & Poor’s
www.bea.gov 10
Where’s the Debt?
Total liabilities/total financial assets
Source: BEA
www.bea.gov
Investing For the Future of Just Keeping Up?
11
Source: BEA
www.bea.gov 12
Human Capital
Source: BEA, Christian (2012)
www.bea.gov
What is the Value of Household Work?
13
www.bea.gov
Feeling Rich on Capital Gains
Source: BEA, Federal Reserve Board
www.bea.gov
Long-Term Happiness and Real GDP
15
Source: BEA, University of Michigan, Veenhoven, R., World Database of Happiness, Distributional Findings in Nations
www.bea.gov 16
Happiness & the Financial Crisis
Gallup Well-being Index
Unemployment rate
Source: BEA, Gallup