Imagine you’re 60 years old, well-off financially, and ready to retire soon. After decades of work, you’ve socked away a sizable nest egg to support yourself and your family. Are you happy?
For most economists, the answer lies in the size of your retirement accounts. We tend to measure well-being in terms of income (what we earn), wealth (what we have), and consumption (what we buy). When we compare people and track inequality, we focus on gaps in income or wealth.
Money matters, of course. It provides the resources to secure our needs and the agency to pursue our wants. But, as aphorisms express, money isn’t everything. I’m part of a group of economists trying to expand how we define and measure well-being to include things like how healthy we are, how long we live, and how much leisure time we have.
Read the full article at Fast Company.
This article was produced by Footnote in partnership with the University of Southern California Marshall School of Business.