How real GDP per capita measures standard of living
Religion & Liberty Online

How real GDP per capita measures standard of living

Note: This is post #72 in a weekly video series on basic economics.

If money can’t buy happiness, why do we measure standard of living in economic terms, specifically GDP per capita?

A primary reason is that increases in real GDP per capita also correlate to improvements in those things money can’t buy, such as health and happiness. In this video by Marginal Revolution University, Alex Tabarrok explains why it’s a helpful measure—and where it falls short.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Click here to see other videos in the Introduction to Economics series.

Joe Carter

Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).