Countermetrics; metrics that measure economic performance from a different perspective. Rather than using metrics to measure the economy, we should be using metrics that measure human well-being in an economy. This goes beyond GDP and other generic output measures. What is in a high GDP/capita ratio today, if a country cannot offer its residents healthcare or a decent education?
A good set of metrics do not simply measure a society’s performance today but should also indicate how ready an economy is to cope with the future. Furthermore, a society does not solely comprise of a certain group but the entire population belonging to it. Any metric that we use should take into account both ideas into consideration. An improved economic situation for the top 1% of earners in a country does not inform on how well the remaining 99% are doing. Neither does it inform on how well this economy will do in 2020. This is were the traditional metrics economists have used in the past decades failed. Any metrics that should be used has to take into account at least education, environment, health and innovation as they account for both, current well-being and are necessary bases for true “growth” in the future.
As I search for new intuitive metrics that can measure well-being, I will also try to write a weekly post on economic events that have been missed out or wrongly reported by the media (both left and right media) and throw-in some daily interesting articles circulating the web and economic blogosphere.