What Does It Mean to be 'Better Off'?

Introduction

The article explores the question "Are we better off now than we were 45 years ago?"
Contextualizes the question by referencing Ronald Reagan's 1980 campaign question.
Acknowledges the complexity of the answer, noting individual perspectives can differ significantly.

Well-being cannot be measured by a single dimension; it involves various indicators.
Common assessments, such as Gross Domestic Product (GDP), are inadequate.
- GDP is the dollar value of all goods produced and sold in an economy.
- Per capita GDP indicates average income across a population.
- Limitations of GDP:
- Does not account for unpaid work (e.g., care work).
- Aggregates positive and negative economic activities equally, e.g., spending on healthcare due to illness versus spending on healthy foods.
The argument is made to explore broader measures of well-being beyond GDP.

Real per capita GDP:
- 1974: $26,446 (in 2012 dollars)
- 2018: $56,702 (more than double)
- Represents both increased abundance of beneficial goods and efficiency improvements in production.
- Examples of new goods and services introduced since 1974 include: home appliances, internet access, and entertainment like streaming services.

Economic growth sometimes results from negative phenomena:
- Longer commutes and increased spending on vehicles do contribute to GDP but can reduce individual well-being.
- Example: Spending on gasoline and car repairs due to long commute times, with no increase in life satisfaction.
Overconsumption leads to storage issues in homes, evidenced by rising self-storage industry profits.
- 2013 revenue from self-storage: $24 billion.
- Average new single-family home size increased by 57% from the 1970’s to early 2000’s.

Labor force participation rate peaked at 67% in the late 1990s and drifted to 63% by 2018, higher than in 1974.
Distribution of wage increases heavily skewed towards small upper-income percentiles:
- Labor income share decreased from 58% in 1970 to 50% in 2010.
- Non-supervisory workers saw their income share drop from 45% to 31%.

Higher education access increasingly tied to job opportunities; yet tuition rates have increased significantly:
- College tuition rates have surged over 300% relative to inflation since 1974.
- Total student debt surpassed $1 trillion, exceeding credit card debt.
Housing affordability has diminished, especially post-2008 financial crisis:
- Discriminatory policies historically barred many non-whites from home purchasing advantages.
- Increased home prices and burdensome lending practices left many homeowners vulnerable.

The probability of moving from the bottom income quintile to the top has not meaningfully changed since the mid-20th century:
- Child born in bottom quintile (1971): 8.4% chance of reaching the top quintile; by 1986 this chance slightly increased to 9%.
Compared to other developed nations, the U.S. shows lower rates of social mobility.

Significant improvements in racial and gender income gaps due to 20th-century social movements:
- Civil Rights Movement and Women’s Liberation significantly improved political participation and economic rights since 1954.
2017 statistics demonstrate remaining economic disparities:
- White men earned a median of $39,804 while Black men earned $24,663.
- Poverty rates remained disproportionately high among Black individuals and single mothers compared to national averages.

The instability of employment and income:
- Increased gig economy usage has led to over 30% of the workforce having unpredictable incomes.
- Median job tenure decreased, reflective of overall employment precarity.
Poverty statistics show a historic fluctuation, with spikes after economic recessions:
- Poverty rate fluctuated between 11%-15% since the mid-1970s.
- Economic downturns exacerbate instability as millions experience brief episodes of poverty annually.

Income does not equate to a fulfilling life; social and political advancements contribute significantly to overall well-being:
- Movements increased dignity and rights.
- The Civil Rights and Women's movements empowered marginalized communities and transformed legal frameworks.

Calls for a shift away from GDP as a measure of progress towards frameworks that prioritize equality and environmental sustainability:
- Current practices threaten long-term societal well-being and environmental stability.
- Importance of redefining success by collectively uplifting marginalized communities and ensuring ecologically sustainable practices.
The COVID-19 pandemic further uncovered existing inequalities, particularly impacting low-wage and marginalized workers:
- Unequal economic recovery from the pandemic showcasing heightened disparities in wealth accumulation.
- Current job security and economic stability remain precarious, with mental health and societal divisions increasing during economic upheaval.

Moving forward, the need to address systemic inequalities and environmental crises is paramount.
A societal commitment towards equality and a sustainable future is essential for enhancing collective well-being.