8 Personal Economics WIN 2025

Course Overview

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.

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.

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.

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

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.

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.

Definition: Encompasses greenhouse gas emissions produced within a country and abroad for imported goods.
Assessment includes contributions from individuals, government, and businesses.

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.

Examples include:
- Time banks
- Community currencies
- Freecycle and Buy Nothing Project.
These mechanisms facilitate sharing and reduce resource consumption.

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.

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.

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.

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.

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).