Quality of Life
Happiness has been shown to increase with a higher GDP per capita, at least up to a level of $15,000 per person.
Economic growth has the indirect potential to alleviate poverty, as a result of a simultaneous increase in employment opportunities and increase labour productivity. A study by researchers at the Overseas Development Institute (ODI) of 24 countries that experienced growth found that in 18 cases, poverty was alleviated. However, employment is no guarantee of escaping poverty, the International Labour Organisation (ILO) estimates that as many as 40% of workers as poor, not earning enough to keep their families above the $2 a day poverty line. For instance, in India most of the chronically poor are wage earners in formal employment, because their jobs are insecure and low paid and offer no chance to accumulate wealth to avoid risks. This appears to be the result of a negative relationship between employment creation and increased productivity, when a simultaneous positive increase is required to reduced poverty. According to the UNRISD, increasing labour productivity appears to have a negative impact on job creation: in the 1960s, a 1% increase in output per worker was associated with a reduction in employment growth of 0.07%, by the first decade of this century the same productivity increase implies reduced employment growth by 0.54%.
Increases in employment without increases in productivity leads to a rise in the number of "working poor", which is why some experts are now promoting the creation of "quality" and not "quantity" in labour market policies. This approach does highlight how higher productivity has helped reduce poverty in East Asia, but the negative impact is beginning to show. In Vietnam, for example, employment growth has slowed while productivity growth has continued. Furthermore, productivity increases do not always lead to increased wages, as can be seen in the United States, where the gap between productivity and wages has been rising since the 1980s. The ODI study showed that other sectors were just as important in reducing unemployment, as manufacturing. The services sector is most effective at translating productivity growth into employment growth. Agriculture provides a safety net for jobs and economic buffer when other sectors are struggling. This study suggests a more nuanced understanding of economic growth and quality of life and poverty alleviation.
Opportunities, education, health, security and a healthy environment contribute to the quality of life. Public policy plays a great role happiness, as Petra Pinzler points out in D+C Development and Cooperation.
Read more about this topic: Economic Growth
Famous quotes containing the words quality of, quality and/or life:
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—Felton Earls (20th century)
“Wit is so shining a quality that everybody admires it; most people aim at it, all people fear it, and few love it unless in themselves. A man must have a good share of wit himself to endure a great share of it in another.”
—Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)
“The richest princes and the poorest beggars are to have one great and just judge at the last day who will not distinguish between them according to their ranks when in life but according to the neglected opportunities afforded to each. How much greater then, as the opportunities were greater, must be the condemnation of the one than of the other?”
—Samuel Richardson (1689–1761)