Historically, the concept of welfare has been difficult to disentangle. This is also
true for economics. An early example of this is the economist Pigou who simply
stated that “it will be sufficient to lay down more or less dogmatically two
propositions; first, that the elements of welfare are states of consciousness and,
perhaps, their relations; secondly, that welfare can be brought under the category
of greater and less” (Pigou 1950/1922, 10). Further, he stressed that the
only obvious way of measuring welfare is in terms of money. This does not
lead to any further clarification of the concept, but still, when looking at amacro-level understanding of welfare, money can be, and is, used as an indicator
(for example, as GDP per capita).
Historically, the concept of welfare has been difficult to disentangle. This is alsotrue for economics. An early example of this is the economist Pigou who simplystated that “it will be sufficient to lay down more or less dogmatically twopropositions; first, that the elements of welfare are states of consciousness and,perhaps, their relations; secondly, that welfare can be brought under the categoryof greater and less” (Pigou 1950/1922, 10). Further, he stressed that theonly obvious way of measuring welfare is in terms of money. This does notlead to any further clarification of the concept, but still, when looking at amacro-level understanding of welfare, money can be, and is, used as an indicator(for example, as GDP per capita).
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