Many things affect a person’s welfare

(Introduction to Economics, Lesson 4)

One of the reasons Economics is not just about money, is that there are many things that affect how well-off someone is — and money is only one of them. Indeed, the relationship between how rich people are and such things as how happy, contented or fulfilled they are, is far from clear.

To look at how well-off someone is, you may indeed consider their monetary income and their wealth, but you would also want to consider such things as their health and the access they have to high-quality healthcare. You’d look at how well-educated they are and at how pleasant and psychologically rewarding their job is. You’d look at whether they have family and friends to support them, at how much leisure time they have and at whether they have interests and hobbies. You’d look at the environment they live in and the sort of climate they enjoy — or have to put up with!

It is clearly very possible for someone who has very little money to still be very well off indeed. Even if they have little material wealth, they can still be very well provided for. They might eat healthily. They might live near to fantastic countryside or other free leisure facilities. They might have lots of friends — or, more likely, just a few very good ones. They may not own many books, but they can borrow as many books from the library…