Friday, 14 October 2016

Wonkbook: Researchers have debunked one of our most basic assumptions about how the economy works

By Jeff Guo Everyone wants economic growth, right? It's part of every politician's package of promises. Expanding economies make people richer, and study after study shows that the wealthier lead happier, healthier lives. Yet in recent years, accumulating evidence suggests that rising incomes and personal well-being are linked in the opposite way. It seems that economic growth actually kills people. Christopher …
 
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Men play dice at a market in Naypyidaw, Myanmar, on Wednesday, Feb. 3, 2016. Myanmar has been cited as one of the world's fastest-growing economies. (Photo by Taylor Weidman/Bloomberg)

Men play dice at a market in Naypyidaw, Myanmar, on Wednesday, Feb. 3, 2016. Myanmar has been cited as one of the world's fastest-growing economies. (Photo by Taylor Weidman/Bloomberg)

By Jeff Guo

Everyone wants economic growth, right? It's part of every politician's package of promises. Expanding economies make people richer, and study after study shows that the wealthier lead happier, healthier lives.

Yet in recent years, accumulating evidence suggests that rising incomes and personal well-being are linked in the opposite way. It seems that economic growth actually kills people.

Christopher Ruhm, an economics professor at the University of Virginia, was one of the first to notice this paradox. In a 2000 paper, he showed that when the American economy is on an upswing, people suffer more medical problems and die faster; when the economy falters, people tend to live longer.

"It's very puzzling," says Adriana Lleras-Muney, an economics professor at the University of California, Los Angeles.

Read the rest on Wonkblog.

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