February 25, 2005

 

the quallity of life

 

By Harry E. Berndt

 

When economists write concerning the health of the economy, they often look at factors such as gross domestic product (GDP), unemployment, the trade deficit, interest rates, and stock market performance to gage the health of the economy. Many people translate those indices as an indication of the quality of life enjoyed in a country. Economists seldom mention factors such as availability of health care, public transportation, child care, education costs, vacation time, average hours of work experienced by workers, or the availability of housing as the determiner of the health of the economy. Their concern is with the production, distribution, and consumption of goods and services. They do not address the quality of life produced by the economic factors addressed. It is taken for granted that if there is a high GDP, low unemployment, low interest rates, and a strong stock market, then the health of the economy is good. But is it? If all of those indicators are in the positive column, does that necessarily mean that the quality of life provided is also in the positive column