Economists Propose CORE Score as Better Measure of Economic Well-Being

Economists propose a new metric, CORE Score, to better assess economic well-being of Americans beyond GDP and Dow Jones, highlighting the need for a more comprehensive measure of economic progress.

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Olalekan Adigun
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Economists Propose CORE Score as Better Measure of Economic Well-Being

Economists Propose CORE Score as Better Measure of Economic Well-Being

Economists Jacob S. Hacker and Jonathan D. Cohen have proposed a new metric called the CORE Score as a better alternative to traditional measures like GDP and the Dow Jones Industrial Average for assessing the economic well-being of Americans. The CORE Score, which stands for Comprehensive Opportunity, Risk, and Economic Security, aims to provide a more comprehensive assessment of economic conditions by incorporating factors beyond just GDP growth and stock market performance.

The authors argue that GDP and the Dow are limited in their ability to reflect the true economic experiences of the majority of Americans. While these indicators may show positive trends, such as GDP increasing in 13 of the last 15 quarters and the Dow reaching record highs, they fail to capture the full picture of economic well-being faced by households. Hacker and Cohen believe that the CORE Score would offer a more accurate and nuanced understanding of the economic challenges facing the middle class and lower-income Americans.

Why this matters: The disconnect between traditional economic indicators and public perception of the economy highlights the need for a more comprehensive measure of economic well-being. The CORE Score could provide policymakers and the public with a clearer understanding of the economic realities faced by American households, potentially influencing policy decisions and public discourse.

The CORE Score aims to capture a broader range of economic indicators, including measures of household financial security, access to healthcare, job quality, and environmental sustainability. By focusing on factors that directly impact the lives of Americans, such as income inequality, healthcare costs, and retirement security, the CORE Score seeks to provide a more meaningful assessment of the nation's economic health and progress.

The proposal has generated significant interest and debate among policymakers, economists, and the general public as they consider alternative ways to measure and track the economic progress and well-being of the country. Hacker and Cohen believe that the adoption of the CORE Score could lead to a shift in policy priorities and a greater focus on addressing the economic challenges faced by everyday Americans.

"The CORE Score would better capture the experiences of the typical American household, including measures of job quality, healthcare costs, and financial security," the authors state. They emphasize that this approach would provide a more accurate and nuanced understanding of the economic realities faced by most Americans, particularly the middle class and lower-income households.

Key Takeaways

  • Economists propose CORE Score to better assess economic well-being of Americans.
  • CORE Score aims to capture broader indicators beyond GDP and stock market.
  • Traditional metrics like GDP and Dow fail to reflect economic challenges faced by households.
  • CORE Score could influence policy decisions and public discourse on economic issues.
  • Adoption of CORE Score could shift policy priorities to address challenges faced by middle/lower-income Americans.