Abstract for ISQOLS 2023: "Wasted GDP in the USA"

I have just submitted the abstract below to the ISQOLS 2023 organizers:

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Wasted GDP in the USA

Abstract

Many believe that the purpose of economic growth is to improve human welfare. Any economic activity has some degree of environmental impact, with higher activity as measured by Gross Domestic Product (GDP) typically involving a more considerable environmental impact. In light of this circumstance, economic growth can be conceived of as wasted if it is not accompanied by improved welfare. In this paper, a concept of “wasted GDP” is introduced. In this perspective, GDP is wasted if it does not support welfare. By estimating what portion of a country´s GDP is wasted, we can assess how effectively the country promotes welfare. The paper is focused on a case study assessing the performance of the United States of America (USA), based on analysis of Human Development Index data. The USA started out as no. 2 in the world by HDI in 1990, but has since been sliding down the list in terms of ranking. While by 2010 the USA was no longer among the world´s 10 most developed countries by this measure, by 2021 it was no longer among the world´s 20 most developed countries. The average US citizen has an income that is considerably higher than the average income in most other countries, including in most rich countries. But despite solid economic growth, over the last three decades the USA has fallen behind several other highly developed countries in the Human Development Index (HDI). 27 countries, large and small, now outperform the USA in terms of nonincome human development, relating to the Health and Education dimensions of HDI. Of these, 22 countries outperforms the USA by nonincome HDI despite having a lower GNI per capita than the USA. I stipulate the share of US GDP that is wasted by comparing US HDI performance with the HDI performance of better performing countries by nonincome HDI that have a lower GDP per capita than the USA. I also estimate ecological pressures related to the USA´s suboptimal human development performance, specifically US CO2 emissions and material footprint related to wasted GDP.