Highlights from 2018-2019 GPI Update

The GPI increased by $7 billion (4%) from 2018 to 2019. The increase in the GPI was driven by increases in household budget expenditures ($3.6 billion), and a decline in the costs of income inequality ($4 billion) and underemployment ($0.79 billion) from the prior year. We did see increases in the loss of natural lands (%0.15 billion, a 10% increase) and depletion of nonrenewable energy resources ($0.29 billion, a 7% increase). Interestingly, in this case Maryland GSP aligns well with the GPI as it also increased by nearly 4% from 2018 to 2019.

Maryland GPI

GPI per Capita

There was a $8.48 billion increase - or 3.66% - in the GPI measure from 2014 to 2015. Improvements were seen in indicators such as employment ($0.91 billion), external benefits from higher education ($1.28 billion), household budget expenditures ($6.74 billion), and the value of unpaid labor (~$5 billion). Positive effects from these benefits were somewhat dampened by increases in income inequality ($1.27 billion), costs of medical care ($0.72 billion), and the cost of crime ($2.4 billion). The significant increase in crime was primarily due to an additional 244 murders - or a 79% increase - from 2014 to 2015. This factor alone was the cause of a $2.2 billion increase in cost between the two years.

Some other indicators that went through positive changes from 2014 to 2015 include services from household capital, which increased by 1.6% ($0.58 billion), internet services, which increased by 3.67% ($0.12 billion), cost of commuting (decreased by $0.30 billion, 1.73%), and public transit, which increased by 10.72% ($0.14 billion).

From 2014 to 2015 there was a very slight increase in environmental costs. Water pollution, solid waste, and greenhouse gas emissions increased by 3.91%, 3.56%, and 3.09% respectively. Noise pollution essentially held steady, and criteria air pollutants decreased by 0.39%. As stated in the 2014 GPI update, the cost of water pollution is calculated as expenditures associated with meeting clean water goals (i.e. the Bay TMDL), so while spending is increasing now a clean bay will confer benefits in the future.

Maryland GPI Benefits Per Capita 2019

Trends in the Genuine Progress Indicator

2012 to 2022
Overall the GPI increased by $38.8 billion over this 10 year period, representing an 18.1 % increase. In comparison, the Gross State Product of Maryland rose by $47.68, or 14%, over this same period (normalized for inflation).

Household spending has increased significantly over the 10 year period but this has been balanced by the increase in income inequality, which increased 2020-2022- income increasingly concentrated in returns above $500,000 and spending on defensive expenditures and household investments. Non-market based well being increased nearly 20%, driven by benefits from higher education and unpaid labor, services from natural capital held steady.

Environmental and social costs decreased by 14%. Within this category depletion of natural capital decreased by nearly $4 billion or 18%, cost of crime increased by over $1 billion and cost of commuting increased by nearly $3 billion, counteracting decreases in the cost of homelessness ($90 million, 25%), underemployment, $6.45 billion, nearly 57%, and air pollution, over $1.5 billion, approximately 50%.

2019 to 2020 – Impact of the Pandemic

The global coronavirus pandemic’s impact on society is reflected in the GPI indicators in several ways. Household budget expenditures fell by almost 3.5%, almost identical to the decrease in the gross state product from 2019 to 2020. However, this relatively small decrease belies the inequity in how the pandemic impacted people across income classes. The cost of inequality, which assesses the relative distribution of income, increased by 96% from 2019 to 2020. Unfortunately this increased disparity across income classes persisted, and actually increased, both in 2021 and 2022. The 44% increase in low income food and nutrition assistance in 2020 also reflects the impact of the pandemic on lower income families. Other impacts can be seen in the decrease of library services and public art, music, and theater due to pandemic related closures, and the increase in subsistence hunting and fishing as these activities rose in popularity. The cost of underemployment increased tremendously, by ~75%, while costs of greenhouse gas emissions and commuting fell due to fewer people being employed and the rise of teleworking options.

While some of these changes linked to the COVID pandemic had longer lasting impacts, overall the GPI, and GSP, returned quickly to prior levels in 2021.

2021 to 2022 - Recent Change

Overall the GPI experienced moderate growth from 2021 to 2022, rising 0.28%, compared with the GSP growth of 1.57%. Household budget expenditures grew by over 8%, but that was partially offset by growth in defensive expenditures, the cost of income inequality, which grew by 6.5%, and a decline in public expenditures like food and housing assistance of nearly 13%. Overall, market based wellbeing increased by 11%. Non-market based well-being held relatively steady, decreasing by less than 1%.

Increases in the value of library services and leisure time likely reflect the continuing recovery from the COVID-19 pandemic. Environmental and social costs rose by nearly 10%. A rise in greenhouse gas emissions, cost of commuting, cost of vehicle accidents and cost of crime reflects the begin of a return to normal activity relative to 2020 and 2021.

Comparison of GPI 2.0 and 1.0 Results

Results are similar in trend using both 1.0 and 2.0 methods, but 2.0 shows a slightly smaller increase year over year from 2012 to 2013 (2.40% vs. 2.70%). The ending GPI value using 2.0 methods is $11 billion more than GPI 1.0 due to the fact that GPI 2.0 includes additional positive inputs, such as ecosystem services, public provisioning government spending, and services from libraries and the internet. These outweigh the additional costs considered in 2.0 like homelessness, groundwater depletion, and additional air pollutants.