8 Personal Economics WIN 2025

Course Overview

• Course Title: Sustainable Economics 2: Personal Economics

• Course Code: ENVIR 239

Happiness and Income Trends

• Real income per person in the U.S. has more than doubled since 1970.

• Poll question: What has happened to the percentage of Americans reporting that they are "very happy"?

  • Responses:

    • Doubled.

    • Stayed about the same.

    • Declined substantially.

U.S. Per Capita GDP vs. Happiness

• Graph Data: U.S. per capita GDP (2006$) and Happiness Over Time (1971-2015).

• Happiness Trend: Percentage of Americans that declare they are "very happy" has varied despite rising GDP.

Seyfang's Perspective on Sustainable Consumption (2007)

• Aim for a radical reorganization of economies towards:

  • Localization

  • Decentralization

  • Smaller-scale operations focusing on human well-being and environmental protection.

• Three proposed examples:

  1. New tools for well-being measurement:

     • Happy Planet Index

     • Genuine Progress Indicator

     • Measure of Domestic Progress.

  2. Localized food supply chains:

     • Emphasizes local sourcing and community involvement.

  3. Non-market exchange mechanisms:

     • Examples include Freecycle, Buy Nothing Project, time banks, and community currencies.

Sustainability Concept

• The notion that sustainability is not about suffering but rather improving quality of life.

Measuring Wealth and Well-Being

• Genuine Progress Indicator (GPI):

  • Evaluates economic activity while considering environmental and social costs.

  • Includes:

    • Goods and services.

    • Income distribution,

    • Education,

    • Resource depletion,

    • Pollution rates,

    • Population health.

• Measure of Domestic Progress (MDP): Similar to GPI, used less frequently.

U.N. Human Development Index (HDI)

• Countries are assessed and mapped via HDI indicators based on 2018 data.

• Color coding gradient from dark green (high HDI) to red (low HDI).

Happy Planet Index (HPI)

• Components of HPI:

  • Wellbeing (individual happiness/satisfaction).

  • Life Expectancy (average expected lifespan).

  • Inequality of Outcomes (inequalities in wellbeing and life expectancy).

  • Ecological Footprint (land needed per person).

• Assessment of the U.S. position in the HPI indicates:

  • Overall, a low carbon cost for productivity or a higher GHG emission with moderate happiness levels.

Carbon Footprint

• Definition: Encompasses greenhouse gas emissions produced within a country and abroad for imported goods.

• Assessment includes contributions from individuals, government, and businesses.

Local Food Supply Chains

• Strategies to promote local food systems:

  • Planting home gardens or joining local farming initiatives.

  • Engaging in Community Supported Agriculture (CSA).

  • Participating in farmers markets.

• Discussion on how local food impacts sustainability.

Non-Market Exchange Mechanisms

• Examples include:

  • Time banks

  • Community currencies

  • Freecycle and Buy Nothing Project.

• These mechanisms facilitate sharing and reduce resource consumption.

Sharing Economies

• Freecycle vs. Buy Nothing Project:

  • Freecycle: Focus on re-use to prevent landfill waste; global network of groups.

  • Buy Nothing Project: Community-centric gifting and sharing, focused on strengthening local connections, which has grown significantly.

The Paradox of Well-Being

• Explores why people continue excessive consumption in the face of potential benefits from minimalism and spending less.

• Discusses resistance to consumerism and options for achieving happiness without high consumption.

Voluntary Simplicity

• Emphasis on meeting material needs directly while spending less on goods.

• Encourages more time for non-materialistic pursuits and community engagement.

• Advocates for meaningful, fulfilling lives with sustainable and fair resource consumption.

Minimalism

• Critique of consumerism encapsulated by Dave Ramsey's quote:

  • "We buy things we don’t need with money we don’t have to impress people we don’t like."

• Discussion includes perspectives from minimalism advocates and its impact on social classes.

Reflective Exercise

• Ladder of Life Measure:

  • Participants are asked to envision their current life satisfaction as a step on a ladder from 0 (worst) to 10 (best).