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

This article provides a qualified defence of economic indicators of hu man well being. Purchasing power obviously matters as a prerequisite f or obtaining basic needs; abundant examples of human behaviour even in the richest countries in the world suggest that it matters for many o ther reasons, as well. Despite the shortcomings of indicators like GDP and GNP, richer nations (like richer individuals) have options that a re simply not available to poorer ones. A particularly serious limitat ion 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 contributio n, or to pathologize certain forms of consumption. While arguing the m erits of a lifestyle less organized around consumption, proponents of sustainable development must acknowledge the strength of the evidence that money matters.