looking at (real) median household income deals with the inequality
issue (to some extent) but doesn't deal with non-market costs and
benefits. The Genuine Progress Indicator and the like try to bring
those in.

Hinrich Kuhls wrote:
> It looks as if you are commenting on chapter VI (GDP and Beyond) of the LSE
> Growth Commission 2013 Report:
>
> "A new focus on median household income would, we believe, influence debates
> about growth policy. Median income growth has lagged behind GDP per capita 
> since
> the early 1980s, in part because of the growth of income inequality so that
> average income has grown faster than the median. In the years running up to 
> the
> crisis, GDP per capita grew much faster than median household income, in part
> because there was a significant increase in government spending on health and
> education, which is reflected in GDP but not in income. The median is not
> perfect of course, because inequality can still widen at other parts of the
> distribution, but it is better than ignoring distribution entirely and it is
> easy to communicate to the public.
-- 
Jim Devine /  "Segui il tuo corso, e lascia dir le genti." (Go your
own way and let people talk.) -- Karl, paraphrasing Dante.
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