Class Eight

*Health Trends- Life Expectancy

From year 0 to industrial revolution, the life expectance increased only 3 years.

Life expectancy is the best measure to social economic project.

*Health Status

Less rate of diseases from 1910 to date.

*Health Trends- Cancer Incidence

Despite cancer incidence increases, the mortality decreases.

*Nutrition

Daily Avg. Per Capita Caloric Consumption increased for 50% for 2 reasons:

i.                    Limited kind of food to diverse food which enhance the quality of diet.

ii.                  Exercise make out body size

Of all the people in human history who ever reached the age of 65, half are alive now.

* Intelligence

Increase in Average IQ

*So what? Do we care about this?

Murphy and Topel-Valuer of health improvements worth appx. $3 trillion per year.

WHY?

We are getting richer, life became more attractive.

*American Living Standards, Past 100 Years (How important economic growth is.)

1.      Labor Market

2.      Household Amenities

No one had them then, everyone has them now

3.      Health-“I Love Cancer!” We died from cancer because we don’t die early/young for other diseases.

4.      Human Capital

5.      Income, Revisited

*Productivity Multiples (What I care is what my money can buy)

If you think about the functionality of the product, our standard of living will be much different.