A new metric offers a better alternative for assessing the economic health of the country

  • GDP and the Dow are up, but public assessments of the economy show profound dissatisfaction
  • Metrics like GDP and the Dow do not provide sufficient insight into American well-being
  • A new metric called the CORE Score offers a better alternative for measuring well-being
  • The CORE Score is based on county-level measurements of economic security, economic opportunity, health, and political voice
  • Early indications show that the CORE Score tracks Americans’ feelings about the economy more accurately than GDP and the Dow
  • There are significant disparities in well-being across different regions and states in the US
  • Political voice is a central component of well-being, and the CORE Score incorporates measures of voter turnout, membership in civic groups, and quality of political representation
  • Persistent gaps in well-being exist among different racial and income groups, which are missed by aggregate measures like GDP
  • Better metrics provide a clearer picture of how Americans build not just wealth, but also well-being

Public assessments of the economy show profound dissatisfaction, despite the positive performance of GDP and the Dow. Metrics like GDP and the Dow do not provide sufficient insight into American well-being. To address this, a new metric called the CORE Score has been developed. The CORE Score is based on county-level measurements of economic security, economic opportunity, health, and political voice. Early indications show that the CORE Score tracks Americans’ feelings about the economy more accurately than traditional metrics. There are significant disparities in well-being across different regions and states in the US. Political voice is a central component of well-being, and the CORE Score incorporates measures of voter turnout, membership in civic groups, and quality of political representation. Persistent gaps in well-being exist among different racial and income groups, which are missed by aggregate measures like GDP. Better metrics provide a clearer picture of how Americans build not just wealth, but also well-being.

Factuality Level: 7
Factuality Justification: The article provides a detailed analysis of the disconnect between traditional economic indicators like GDP and the actual well-being of Americans. It introduces a new metric, the CORE Score, to measure American well-being and highlights the importance of considering factors beyond GDP and the Dow to assess the country’s economic health.
Noise Level: 3
Noise Justification: The article provides a thoughtful analysis of the disconnect between traditional economic indicators like GDP and public sentiment. It introduces a new metric, the CORE Score, to measure American well-being, offering a more comprehensive view of economic health. The article also delves into the importance of political voice and representation in assessing well-being. Overall, it presents a well-reasoned argument supported by evidence and data, making it a valuable and insightful read.
Financial Relevance: No
Financial Markets Impacted: No
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article does not pertain to financial topics or provide information on events that impact financial markets or companies. It discusses the limitations of traditional economic measures like GDP and the Dow in assessing American well-being and proposes a new metric called the CORE Score. The article does not mention any extreme events or their impact.
Public Companies: Dow Jones (N/A)
Private Companies: American Academy of Arts and Sciences
Key People: Jacob S. Hacker (Stanley Resor Professor of Political Science at Yale University), Jonathan D. Cohen (Joan and Irwin Jacobs Senior Program Officer at the American Academy of Arts and Sciences)

Reported publicly: www.wsj.com