(Some modifications toward the bottom)
The most direct indicator of the fundamental health of a nation’s economy would not be stock market performance, unemployment rates, or interest rates.
Rather, we ought to make an attempt to more directly measure individual independence– the ability of individuals to support themselves, save money, and be flexible in their job options– an individual independence index. That is, the III, or I³, or I-CUBE. I know, it’s silly to make too much of a fuss over what to name something before going into the substance of what the thing is.
What this would be, is a more direct measure of what the real economic foundation of a population is: the ability of individuals to support their households. This could be done through a survey, which I would suggest limiting to three questions for a few reasons. First, the kind of questions that need to be asked are complicated enough that more would be impractical. Second, for what is intended to be such a fundamental measuring device, it should certainly not be any more complicated than is practical. Third, it adds a bit more significant meaning to the name of I-CUBE/I³: rather than simply being a catchy abbreviation for three words beginning with the same letter of the alphabet it would actually represent the fact that three significant dimensions are being measured.
These are the three questions, which would be administered to heads of households, attempting to get a large random sampling across all socioeconomic categories.
The I-CUBE Questionnaire for the Individual Independence Index
First, get total household income and number of adults and kids in the household, just for basic demographics and making sure the overall I-CUBE average is adjusted for known proportion of households in each income bracket. It’s also for calculating the poverty level which is used to calculate the scores.
Question 1: Preparedness
Suppose you were to lose your primary source of income. What would be:
A) The total of all your current secondary sources of income, per annum (including the incomes of other members of your household) and–
B) — the total of all your currently readily available funds in savings accounts, other reserve funds, and any assets you are able and willing to liquidate in an emergency?
Add the answers to parts A and B together.
Question 2: Self-Sufficiency
How much money, in total, do you estimate you saved through the previous year by doing things yourself (including the activities of other members of your household)?
Note: Obviously includes the grocery store value of vegetables you grew yourself, installation costs avoided by installing an appliance yourself, plumbers’ or electricians’ fees avoided by installing fixtures yourself, the value of furniture you built yourself (minus cost of materials), et cetera. But don’t forget the value of doing your own lawn care, cooking, and interior cleaning — those will add a hefty chunk.
Of course, do not count projects that failed and had to be redone by a professional.
Question 3: Flexibility
Suppose again that you were to lose your primary source of income. Suppose further that no jobs are available anywhere that use the same skill set in the same industry. What is the starting annual income of the next best job for which you currently qualify?
Conclusion
Divide all the answers by the current poverty level (use local figures if available) for the given household size in order to get something approaching a more absolute score. Keep them separated into I-CUBE-1, I-CUBE-2, and I-CUBE-3 scores for semi-detailed reports, or add them together into the total I-CUBE for brevity. Keep the personal I-CUBE scores of individuals private and confidential.
Obviously, one challenge would be getting an accurate measurement, as we’d either have to rely on the honesty of people’s self-reporting or an intrusive audit. But assuming that we could get a reasonably accurate score, I dare say it would be pretty darn useful.
As far as single numbers go, it might be better for the composite I-CUBE score to include some adjustment based on how even the three subscores are with each other, rather than be a simple total of the three subscores. It seems reasonable to say that an I-CUBE score set A of (1.00, 1.00, 1.00), is better than set B ( 1.40, .20, 1.40), even though both total to 3.00. Maybe just take the difference from the mean of any subscore that falls below the mean, and apply that as a penalty to the composite I-CUBE score. So set A would get 3.00, while set B would get 2.20.
My initial guess is that an I-CUBE score of 3.0 would be passing, 4.0 good, and anything over 5.0 excellent. Below 3.0, I’d have to say, is a failing score.
For Epic Win:
Design the K-12 education system toward the goal of maximizing the population’s I-CUBE score. My plan for that is coming next.