Dear readership,
when human life becomes a number
Why do we even ask what value is assigned to a person? In politics, insurance, and economics, decisions rest on metrics—health protection, climate action, care programs, and infrastructure investments. If we make such decisions, we must understand how they arise and where their limits lie. Ultimately, it’s not about cutting costs or maximizing profits, but about life, dignity, and solidarity.
Income as the ultimate metric: the human capital approach
The human capital approach equates a person’s value with their expected future earnings. All future salaries are estimated, discounted to the present, and summed. A thirty-year-old in Germany thus has human capital between €1.8 and €2.5 million. Children and retirees fall to nearly zero because they generate no future earnings. Unpaid care work—like family caregiving worth over €206 billion annually in Germany—goes uncounted.
Valuing life in dollars: what is the Value of Statistical Life (VSL)?
While human capital values income, the Value of Statistical Life (VSL) is based on how much people are willing to pay to reduce their mortality risk. Authorities use this to balance costs and benefits for speed limits or air quality measures. International comparisons reveal vast differences: a Swiss VSL is about $9.4 million, in the U.S. it’s $7.2 million, Germany’s is €3.5 million, and the global average is only about $1.3 million. Thus, a statistical Swiss life is nearly ten times more “valuable” than one in low-income countries.
Annual value of life: introducing the VSLY
A flat VSL creates age paradoxes: all ages are equally valued despite vastly different remaining life expectancies. To address this, VSL is divided by remaining years of life—Value of Statistical Life Year (VSLY). A thirty-year-old with roughly 50 years left has a VSLY of about €70,000 per year, whereas an 85-year-old with five years left reaches roughly €700,000 per year. So, while human capital declines with age, VSLY rises.
The dual reality: older adults as costs and profit sources
In healthcare, older adults are costly and profitable. In the U.S., those over 85 incur nearly twice the Medicare costs of the 65–84 group. In Germany, over 40% of health expenditures serve those 65 and older, though they comprise only 22% of the population. Simultaneously, the U.S. eldercare market soared: assisted living rose 34.4% and home care 50.5% (2013–2020), totaling $57.4 billion.
Cost-effectiveness of suicide prevention: who counts?
Suicide prevention’s ROI varies by age. In the U.K., workplace interventions yield a 4.42:1 ROI, but none is calculated for retirees. An Australian study labels elderly interventions “less cost-effective” since productivity losses are smaller. This means we invest in “productive” age groups while sidelining the elderly.
Consumption as state capital
The state gauges each citizen’s revenue potential by their taxable income, VAT contributions (around €251 billion annually in Germany), and social security premiums. Excise taxes on tobacco or energy steer behavior and fund the government. All these figures feed into the National Accounts for budget and debt forecasting.
Seven worlds of human valuation
- Nordic Model: high VSL (7.3–7.6M USD), social spending up to 28% of GDP.
- Continental Model: VSL 3.5–9.4M USD, social spending up to 32%.
- Anglo-Saxon Model: VSL 6.8–7.2M USD, social spending ~20%.
- East Asian Model: VSL ~6M USD, social spending 9.8–21.9%.
- Emerging Markets: VSL 1.5–2M USD, social spending 4.2–13.2%.
- Developing Countries: VSL 0.3–1.2M USD, social spending <3.2%.
- Bhutan: Gross National Happiness in place of GDP.
The ethical gap of monetary models
These methodologies measure only what can be quantified: income, consumption, risk. They leave out quality of life, relationships, cultural identity, and human dignity. Deciding solely with money reduces people to cost centers.
Putting people at the center
- Multidimensional Well-being Index: health, environment, social cohesion.
- Care Economy in accounts: record unpaid care work as investment.
- Capability Approach: measure actual freedoms and opportunities.
- Inclusive age analyses: weight vulnerable groups carefully.
- Transformative basic income: economic security and care recognition.
- Participatory budgeting: citizens decide on health and environment funds.
- UN Global Well-being Framework: global minima for rights and environment.
A positive Earthprint starts today
With just €0.09 a day, you join our rewilding cooperative, converting intensive livestock into extensive grazing, sequestering CO₂, and boosting biodiversity. Every contribution helps protect our Mother Earth—our “nursery room.”
“If you really want something done, do it yourself.”
We are members of the Global Alliance for the Rights of Nature. Sign our petition and share responsibility with us.
