GDP and Beyond -- BEA seeks comments on prototype Measures of Economic Well-Being and Growth

Question

From AEAStat:

The U.S. Bureau of Economic Analysis has published new prototype Measures of Economic Well-Being and Growth and invites comments. The measures are available at https://apps.bea.gov/well-being/  These measures were discussed at the 2020 ASSA session on Beyond GDP.   

In recent years there has been a renewed interest in economic statistics that go beyond GDP in measuring well-being. This includes better tracking and highlighting economic activity that is included in GDP—a key driver of economic well-being—and capturing nonmarket goods and services that are not included in GDP but are also important determinants of economic well-being.

BEA recently embarked on an initiative—GDP and Beyond—to identify ways to use its data resources and statistical knowledge to inform the discussion of well-being. As part of the first phase of that initiative, BEA has re-packaged statistics from its core accounts with data from statistical agency partners in ways that provide new perspectives on economic well-being and the distribution and long-term growth of the economy. These measures include:

Economic well-being measures like GDP per capita and inflation and employment trends.
Distribution statistics such as real GDP growth by industry, real personal income per capita by state, and the distribution of personal income across households.
Long-term growth indicators including trade balances, U.S. budget deficits over time, and trends in U.S. business cycles.

BEA would like input from the public to refine these prototype measures. Data users' evaluations and comments will be used to help review and update the information presented in this set of measures. Please email all comments to WellBeing@bea.gov.

Answer 1

Thank you very much for this very important initiative.

My main comment is that the range of indicators on wellbeing could be greatly expanded to include more indicators of wellbeing and deprivations measured at the individual or household level.  This is necessary to have a deep understanding of the wellbeing and the struggles of people and families, including on poverty, hunger, homelessness . We already know a great deal about all these issues.  Many such indicators have been produced by the Census Bureau and other research institutions for decades.  A measurement of multiple deprivations experienced simultaneously by families/individuals is also key.