How to Measure Quality of Life

Using an imperfect but directionally correct indicator
How to Measure Quality of Life

GDP per capita is a widely used economic indicator calculated by dividing a country’s gross domestic product (GDP) by its population. While it’s not a perfect metric, it serves as a rough measure for assessing a society’s standard of living, providing a directionally accurate sense of economic trends over time.

The trend is undeniable: the average American today enjoys a quality of life nearly three times greater than during the Reagan presidency. This long arc of progress becomes even more striking when comparing living standards in the United States to those of other advanced economies.

To be clear, GDP per capita doesn’t capture every aspect of well-being, such as income inequality or environmental factors. However, it remains a valuable tool for understanding broad economic improvements. Despite the chaos of recent years, from economic downturns to insurrections, the essence of the American dream endures, reflecting resilience and opportunity in the pursuit of a better life.