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Chapter 19: Problem 6

A typical U.S. worker today works fewer than 40 hours per week compared to 60 hours per week in 1890 . Does this difference in the length of work weeks matter in comparing the economic well-being of U.S. workers today with that of \(1890 ?\) Or can we use the difference between real GDP per capita today and in 1890 to measure differences in economic well-being while ignoring differences in the number of hours worked per week? Briefly explain.

Short Answer

Expert verified
While it's true that real GDP per capita has significantly increased from 1890 to today, workers in the U.S. work fewer hours currently. This suggests that economic well-being isn't solely determined by GDP per capita; the number of hours worked per week matters too. There's likely been some improvement in economic well-being due to the reduced work week and higher real GDP per capita, though a thorough analysis would incorporate other factors such as the wealth distribution, leisure time, and working conditions.

Step by step solution

01

Understand the Variables Involved

First, it's essential to analyze the variables in the exercise. Here, we have real GDP per capita, hours worked per week and economic well-being of the workers.
02

Relate Variables to Economic Well-being

Next, we need to understand how each variable contributes to economic well-being. Real GDP per capita is often used as a measure of economic well-being because it represents the average economic output per person. However, it does not take into account the distribution of wealth among the population or the number of hours worked. The number of hours worked per week can factor into a person's quality of life, potentially affecting economic well-being negatively if workers must put in excessive hours to make ends meet.
03

Compare the Variables Across the Two Time Periods

Now, compare the two periods. While it's true that the real GDP per capita has significantly increased from 1890 to the present day, workers work fewer hours currently. This reduction in work hours could indicate an improvement in economic well-being as it could mean that fewer hours are needed to secure one's livelihood or that working conditions have generally improved.
04

Conclusions on Economic Well-being

Finally, based on the counteracting influences of a higher GDP per capita and lower working hours, it's difficult to measure the economic well-being purely based on GDP per capita from 1890 to today. One must consider working hours as well. However, one could reasonably infer some improvement in economic well-being due to the reduced working hours and higher real GDP per capita, but further measures and considerations may be necessary for a detailed analysis.

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