All these qualifications upon estimates of national income as an index of productivity are just as important when income measurements are interpreted from the point of view of economic welfare. But in the latter case additional difficulties will be suggested to anyone who wants to penetrate below the surface of total figures and market values. Economic welfare cannot be adequately measured unless the personal distribution of income is known. And no income measurement undertakes to estimate the reverse side of income, that is, the intensity and unpleasantness of effort going into the earning of income. The welfare of a nation can, therefore, scarcely be inferred from a measurement of national income as defined above. In 1962, Kuznets stated:Simon Kuznets. "How To Judge Quality". The New Republic, 20 October 1962Distinctions must be kept in mind between quantity and quality of growth, between costs and returns, and between the short and long run. Goals for more growth should specify more growth of what and for what.
All these qualifications upon estimates of national income as an index of productivity are just as important when income measurements are interpreted from the point of view of economic welfare But in the latter case additional difficulties will be suggested to anyone who wants to penetrate below the surface of total figures and market values Economic welfare cannot be adequately measured unless the personal distribution of income is known And no income measurement undertakes to estimate the reverse side of income that is the intensity and unpleasantness of effort going into the earning of income The welfare of a nation can therefore scarcely be inferred from a measurement of national income as defined above In 1962 Kuznets statedSimon Kuznets "How To Judge Quality" The New Republic 20 October 1962Distinctions must be kept in mind between quantity and quality of growth between costs and returns and between the short and long run Goals for more growth should specify more growth of what and for what