by Jim Rose in applied welfare economics, economic history, Gary Becker, politics - Australia, politics - New Zealand, politics - USA, population economics, technological progress Tags: Australia, British economy, Canada, life expectancy, lost decades, New Zealand, The Great Enrichment

Figure 1: increase in real GDP and increase in real GDP plus life expectancy GDP increase equivalent, Australia, New Zealand, Canada, USA and England & Wales, 1965 to 1995

Source: Becker, Gary S., Tomas J. Philipson, and Rodrigo R. Soares. The Quantity and Quality of Life and the Evolution of World Inequality, NBER Working Paper No. 9765 (June 2003) .

GDP per capita is usually used to proxy for the quality of life of individuals living in different countries. Becker and his co-authors computed a "full" growth rate that incorporates the gains in health and life expectancy.

Figure 1 shows that New Zealand was way behind the other countries in improvements in the quantity and quality of life between 1965 and 1995. This brings new meaning to the two decades of lost growth between 1973 and 1995. Canada should refer to 1965 to 1995 as its golden era.