Quotulatiousness

July 11, 2013

Inane new “measurement” claims 1978 was the “best year ever”

Filed under: Economics, History — Tags: , , , , — Nicholas @ 08:39

An editorial in New Scientist (which I can’t quote from due to copyright concerns) claims that using a new “measurement” called the Genuine Progress Indicator (GPI), human progress peaked in 1978 and it’s all been downhill since then. Anyone who actually lived through 1978 might struggle to recall just what — if anything — was better about 1978 than following years, but the NS editors do point out that the GDP measurement generally used to compare national economies doesn’t capture all the relevant details, while GPI includes what they refer to as social factors and economic costs, making it a better measuring tool for certain comparisons.

I can only assume that most of the economists who believe that 1978 was a peak year for the environment hadn’t been born at that time: pollution was a much more visible issue in North America and western Europe than at almost any time afterwards (and eastern Europe was far worse). Industry and government were taking steps to cut back some of the worst pollutants, but that process was really only just in its early stages: it took several years for the effects to start to show.

In the late 1970s, the world was a much dirtier, poorer, less egalitarian place than even a decade later: China and India were both much more authoritarian and had still not mastered the art of ensuring that there was enough food to feed everyone. Behind the Iron Curtain, Soviets and citizens of their client states in Europe were falling further and further behind the material well-being of westerners (and becoming much more aware of the deficit).

No matter how much emphasis you put on nebulous “social factors”, the fact that the world poverty rate — regardless of how you measure it — has been cut in half over the last twenty years, lifting literally billions of people out of near-starvation makes an incredibly strong case that the world is doing better now than at any time since 1978. You can prattle on all you like about “rising inequality”, but for my money it’s a better world where the risk of people literally starving to death is that much closer to being eliminated. Give me an “unequal” world where even the poorest have enough food and clean water over an egalitarian world where billions starve, thanks very much.

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