Over the course of nearly every national presidential campaign, we are asked whether we are better off than we were four years ago. The question is almost always rhetorical. But many economists have attempted to address the standard-of-living issue objectively, and, for the most part, their findings paint a bleak picture.

Slesnick demonstrates that many economists' pessimistic view of social welfare in the United States is unwarranted and questions the case for changes in policies that are predicated on a declining or stagnant standard of living. He shows why consumption-based methods provide a more accurate assessment of living standards than income-based methods.

Daniel T. Slesnick is the Rex G. Baker Jr. Professor of Political Economy at the University of Texas at Austin.