In social, political and economic discourse it is common to hear people discussing a concept like wealth as if what constitutes real, actual, or true wealth was both a clear and a settled matter. Both the term and the concept, wealth, are a close relative to the term and concept, value. In conventional and nearly ubiquitous usage, value and wealth are considered to be measurable or at least determinable in units of currency, or money. Yet careful examination reveals that a person, community, or nation can grow its stash of cash (money) while diminishing other social, ecological, spiritual (etc.) goods in this same persuit. Such goods are treated as "externalities" by economists and societies, and thus-and-therefore some economists have sought to measure these apparently incommensurables in monetary units, in order to gear our economy toward valuing these. My question is, isn't this whole project in a thousand ways doomed?
Yes, it's doomed. And, moreover, in many ways it's pernicious. It's pernicious because it biases the direction of social policy and even personal conduct in the direction of things measurable in monetary terms and thereby arguably misallocates resources. For example, consider one of the most prominent monetary measures of national wealth--GDP. The growth of GDP is typically taken to be a good thing. But really the best course of action would be to maximize the things that truly matter while minimizing GDP. GDP (or GNP if you like) measures the monetary cost of producing goods and services. But suppose you could produce the same goods and services while reducing GDP. Or, more importantly, suppose you could reduce GDP but actually increase things like happiness, life spans, general health, peaceableness, ecological well-being, biological diversity, educational attainment, artistic achievement, scientific advancement, moral virtue, athleticism, family stability, etc. The very...
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