MONEY MATTERS; A REALITY CHECK,WITH HELP FROM VIRGINIA WOOLF

This article provides a qualified defence of economic indicators of human well being. Purchasing power obviously matters as a prerequisite for obtaining basic needs; abundant examples of human behaviour even in the richest countries in the world suggest that it matters for many other reasons, as well. Despite the shortcomings of indicators like GDP and GNP, richer nations (like richer individuals) have options that are simply not available to poorer ones. A particularly serious limitation of such indicators arises from their failure to take into account the distribution of income and wealth, both within and among nations. Higher income does not automatically lead to increased well being, but extreme caution is in order about attempts to dismiss its contribution, or to pathologize certain forms of consumption. While arguing the merits of a lifestyle less organized around consumption, proponents of sustainable development must acknowledge the strength of the evidence that money matters.