Index of Sustainable Economic Welfare - Trend of ISEW in The USA

Trend of ISEW in The USA

The calculation of the ISEW in the United States from 1950 to 1986 was done by Cobb and Daly in 1989. The results reveal that the increase in economic welfare of an average American has stabilised after the 1970s although the economic growth, measured by GDP, has continued to grow. According to Cobb and Daly’s calculations the external effects of production and the inequity of income distribution are the main reasons for this development in which an increase in production does not necessarily lead to an increase in welfare.

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