In our latest blog, OSR’s Jonathan Price introduces his recently published think piece on value and GDP.
Ed’s recent blog exploring GDP prompted me to look again at ONS’s recent inclusive income release. Inclusive income aims to complement GDP, which most would regard as inadequate as a single measure of society’s progress. For instance, GDP does not capture many kinds of worthwhile activity that are not paid for (caring for a relative, for example) but does capture activities that many would not regard as beneficial (like trading in illicit drugs).
ONS states that “Inclusive income estimates provide a broader measure of the economic welfare of the UK population. They reflect the economic value of both paid activity, included in gross domestic product (GDP), and unpaid activity, which includes ecosystem services and unpaid household services. The result is measures of economic progress that include activity and assets beyond those currently included in GDP.”
This got me thinking about the activities we do in life that are unpaid, and the personal activities that add value to our lives but cannot be measured – at least not directly. My reflections made me recall the first line of the poem “Leisure” by the Newport poet W H Davies:
“What is this life if, full of care, we have no time to stand and stare.”
This line, and indeed the whole poem, encourages us to stand back from the pressures of everyday life and to take time to observe the world we inhabit. The poem singles out the natural world as being particularly worthy of our full attention.
As a result of my reflections, I have written a think piece about the value of some personal activities and aspects of our environment.
The think piece explores the value we get from personal activities, including just standing and staring, and from aspects of our engagement with the natural world, and how far this value can be properly measured and expressed in monetary terms.
It does not pretend to be an academic study and does not include a review of other writing or research on the topic (which is extensive). Instead, the piece is a personal reflection that starts from first principles and is intended to prompt thought and discussion rather than to arrive at definite conclusions.
I’d very much welcome comments, and indeed criticisms, on my reflections as I hope is made clear, I think the issues discussed are ones where reasonable people can reasonably disagree. Please email your thoughts to me at regulation@statistics.gov.uk.