8. Gross Domestic ProductGross Domestic Product
What GDP counts:
+ goods and services sold
+ oil spills, natural and
manmade disasters
+ illness and death
+ divorce
+ accidents
What GDP does not count:
- time with friends & family
- volunteering, participating
in democratic process
- gardening, educating
yourself
- walking for exercise
the sum of all good and
services produced in a year
9. Does GDP make us happy?
GDP in the US has
more than tripled
since 1950s.
Adjusted per capita
GDP since 1960 has
doubled since 2010
Happiness hasremained stagnant
and even fallen
11. Easterlin Paradox
40 year study of nations across the globe
Between $35 - 75K for
family of four, long and
short term happiness
increases a lot with
more money.
After a salary of
$75K, long term
happiness increases
are marginal or non-
existent, short term
increases in
happiness do occur.
13. Gross National Happiness is
more important than Gross
National Product
Gross National Happiness is
more important than Gross
National Product
Jigme Singye Wangchuk
King of Bhutan 1972
14.
15. Constitution
60% natural habitat
70% currently
Bhutan’s Foreign Direct
Investment (FDI) Policy of 2010 -
environmentally friendly,
sustainable businesses
Carbon Sink
23. Three things you can do forThree things you can do for
your happiness today:your happiness today:
GratitudeGratitude
GivingGiving
CompassionCompassion
Tell a story here and let this slide stand by itself.
“Now I want to tell you a story. Imagine tomorrow you woke up – and had a really bad day. You left the stove on, happened to burn the house or apartment complex down, on your way to work, you caused a terrible accident that killed three people – blood all over the street, a huge traffic jam – you get to work and your spouse calls you – he or she wants a divorce and promises its going to be long, messy and very expensive. YOU HAVE DONE GREAT THINGS FOR GDP today. Now let’s imagine another scenario: You wake up, it’s a weekend morning, you spend a leisurely morning picking fruit in the garden and making your loved ones breakfast, then you all go for a walk through the neighborhood- you do not go to the gym- and when you get home you decide to spend the afternoon talking, reading to each other and playing a board game – not going to the movies. YOU ARE MISERABLE - YOU HAVE DONE NOTHING FOR GDP.
Robert Kennedy pointed out that our Gross National Product "measures everything except that which makes life worthwhile."
Genuine Progress Indicator Cheat Sheet.
The goal of the Genuine Progress Indicator (GPI) is an alternative to the Gross Domestic Product . It accounts for health care. childcare, volunteering, income distribution,, safety, a clean environment, and other indicators of well-being.. The purpose of the GPI is to shift economic policy towards sustainability. It is used by governmental and non-governmental organizations worldwide. Because the GDP and the GPI are both measured in monetary terms, they can be compared on the same scale. Download report: The Genuine Progress Indicator 2006
The GPI starts with the same personal consumption data that the GDP is based on and maker some adjustments:ADD
Housework, Volunteering, and Higher Education - GPI includes the value of this work figured at the approximate cost of hiring someone to do it. The GPI also takes into account the non-market benefits associated with a more educated population.
ADJUST
Income Distribution - GPI rises when the poor receive a larger percentage of national income, and falls when their share decreases.
Changes in Leisure Time - When leisure time increases, the GPI goes up; when Americans have less of it, the GPI goes down.
Lifespan of Consumer Durables & Public Infrastructure - GPI treats the money spent on capital items as a cost, and the value of the service they provide year after year as a benefit for private capital items and to public infrastructure, such as highways.
SUBTRACT
Resource Depletion GPI counts the depletion or degradation of wetlands, forests, farmland, and nonrenewable minerals (including oil) as a current cost.
Pollution - GPI subtracts the costs of air and water pollution as measured by actual damage to human health and the environment.
Long-Term Environmental Damage - GPI treats as costs the consumption of certain forms of energy and of ozone-depleting chemicals. It also assigns a cost to carbon emissions to account for the catastrophic economic, environmental, and social effects of global warming.
Crime - GPI subtracts the costs arising from crime.
Defensive Expenditures - GPI counts defensive expenditures as costs rather than as benefits.
Dependence on Foreign Assets - GPI counts net additions to the capital stock as contributions to well-being, and treats money borrowed from abroad as reductions. If the borrowed money is used for investment, the negative effects are canceled out. But if the borrowed money is used to finance consumption, the GPI declines.
source for Layard (2005) graph is his book Happinesss: Lessons From A New Science
also find here http://cep.lse.ac.uk/events/lectures/layard/RL030303.pdf
and a piece on Layard himself http://www.theguardian.com/lifeandstyle/2008/jun/24/healthandwellbeing.schools
Source: http://www.pnas.org/content/early/2010/12/08/1015962107.full.pdf+html
an article and source for photo http://www.vancouversun.com/business/Douglas+Todd+happier+poor+rich/9509671/story.html
Source: http://www.pnas.org/content/early/2010/12/08/1015962107.full.pdf+html
an article and source for photo http://www.vancouversun.com/business/Douglas+Todd+happier+poor+rich/9509671/story.html
Tell a story again:
17 year old king
asked what are you going to do to improve your countries GDP? GNH is more important. Use a subjective and objective measures of wellbeing Guides countries poliecy decisions and alllocations of resorucs