Chávez Wants a New ‘Socialist-Friendly’ Economic Gauge

Venezuelan President Hugo Chávez didn’t appreciate the recently released data that showed the Venezuelan economy has slipped into a recession. So what’s a Socialist leader to do? Create a new economic gauge, one that is “Socialist-friendly.”

“We simply can’t permit that they continue calculating GDP with the old capitalist method,” President Chávez said during a televised speech to members of his party Wednesday night.

“It’s harmful,” he added.

So what caused Mr. Chávez’s deep displeasure? For one, new data showed Venezuela’s GDP fell 4.5 percent in the third quarter compared to the same period last year making it the second consecutive quarterly decline. This data, moreover, was provided by the Venezuelan central bank.

It remains unclear what Chávez’s new measure would look like. Either way Chávez’s push for an alternate to the GDP is far from innovative.

In 1972, for instance, Bhutan’s former King Jigme Singye Wangchuck coined the term “Gross National Happiness” (GNH) as an alternate to GDP. This measurement sought to quantify well-being and happiness through measuring economic wellness, environmental wellness, physical wellness, mental wellness, workplace wellness, social wellness, and political wellness.

The GNH never really caught on, due largely to the (intentionally) subjective nature of the measurements. I have a feeling what led to the GNH’s failure will be exactly what attracts Chávez.

The Improved Material Well-Being of American Families

From the BLS report “100 Years of U.S. Consumer Spending“:

1. The material well-being of families in the United States improved dramatically, as demonstrated by the change over time in the percentage of expenditures allocated for food, clothing, and housing. In 1901, the average U.S. family devoted 79.8 percent of its spending to these necessities. By 2002–03, allocations on necessities had been reduced substantially, for U.S. families to 50.1% of spending (see top chart above).

2. The continued and significant decline over the century in the share of expenditures allocated for food also reflected improved living standards. In 1901, U.S. households allotted 42.5% of their expenditures for food; by 2002–03, food’s share of spending had dropped to just 13.2%.

3. Over the 100-year period, expenditure shares for clothing steadily declined. In 1901, the average U.S. household allocated 14% of total spending for apparel. By 2002–03, spending shares for clothing had decreased to 4.2%.

4. In 2002–03, the average U.S. family could allocate about 50% ($20,333) of total expenditures for a variety of discretionary consumer goods and services, while the average family in 1901 could allocate only 20.2%, or $155, for discretionary spending (see bottom chart above).

Conclusion: Perhaps as revealing as the shift in consumer expenditure shares over the past 100 years is the wide variety of consumer items that had not been invented during the early decades of the 20th century but are commonplace today. In the 21st century, households throughout the country have purchased computers, televisions, iPods, DVD players, vacation homes, boats, planes, and recreational vehicles. They have sent their children to summer camps; contributed to retirement and pension funds; attended theatrical and musical performances and sporting events; joined health, country, and yacht clubs; and taken domestic and foreign vacation excursions. These items, which were unknown and undreamt of a century ago, are tangible proof that U.S. households today enjoy a higher standard of living.

HT: Carpe Diem

The Self-Employed Are the Happiest Workers in America

According to Gallup-Healthways Well-Being Index poll data, business owners are the happiest workers in America:

HT: Economix

Stress levels by State

The map below from the the Gallup-Healthways Well-Being survey illustrates the stress levels for each of the 50 American states. The map shows the percentage of survey respondents who said they experienced stress “during a lot of the day yesterday” between January and June 2009.

HT: Richard Florida

The Well-Being Index

Newly released data from the Gallup-Healthways Well-Being Index shows the states with high and low well-being rates. According to Gallup, the index seeks to “measure what it is that people believe constitutes a good life, who is feeling good about life and who is in need of a helping hand.”

(Click to enlarge)