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One measure of standard of living used by economists is personal consumption expenditures (PCE) per person adjusted for inflation. PCE measures the value of goods and services purchased by residents in the United States. It includes purchases of autos, major appliances, food, clothing, medical care, utilities, housing services, insurance, used goods, and purchases abroad by U.S. residents.
Per capita PCE is an indicator of current economic prosperity. Except for recessionary periods, inflation-adjusted PCE per person has shown an upward trend over the last 25 years and has increased more than 60% during that period.
It should be noted that per capita PCE reflects only the amount of money one is able to spend on goods and services and not necessarily the value of those goods and services from the standpoint of sustainable development. For example, some equally-priced products may last longer or be produced through more environmentally-sound processes than others; these differences in sustainability value are not reflected by PCE. In addition, some expenditures are incurred to protect oneself against negative experiences (e.g., security systems are purchased as protection against crime); these are expenditures that one might prefer not to need or want. In the context of sustainable development, it might be useful to develop a complementary indicator that reflects the value that people feel they are getting from their purchases of goods and services.
Link(s) to be added, when feasible, to data at level of detail suitable for use at the community level.
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http://www.sdi.gov/indicators/lc_consu.htm Last Modified: May 13, 2002 |