24 December 2010

How much non-economic welfare

Waste, bads, disutility – these are typically not traded in the marketplace and so they are not measured as economic welfare. Indeed, when they are measured they enter as economic goods insofar as what is being measured is the product or service being transacted-in to deal with the disutility. 
As the asset base of the resource gift does not enter into the measurement of economic life, so the asset effect of the injury to society's asset base of welfare does not go into the measurement of economic life. 
For starters we should develop a sense of how much and which proportion of our lives is the result of economic welfare and how much non-economic welfare. 

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