Understanding Per Capita: A Guide for Journalists
Journalists must always convey information accurately and provide context for their audience, which can be a challenge when journalists are researching context for themselves. When reporting on economic research, government reports, or other statistical data having to do with money, the phrase “per capita” tends to make an appearance quite a bit. Coming from Latin, “per capita” roughly translates to “for each head.” The phrase is usually used in conjunction with economic indicators such as gross domestic product (GDP). But what does it actually mean, and how does reporting “per capita” clarify economic data?
Firstly, it’s important to know that per capita is a mean, or an average, of data from individuals. For example, reporting per capita health care expenditures by state provides the average amount each person spends on health care. A report from the U.S. Centers for Medicare & Medicaid Services reveals that in 2020, per capita health care spending ranged from $7,522 in Utah to $14,007 in New York. The United Kingdom, which has a system of socialized healthcare, looked at a per capita expenditure of £4,188 per person in 2021, or $5410.75—less than the lowest per capita expenditure in the United States.
Sometimes, research papers or government reports may not present data on a per capita basis. In such cases, journalists can calculate the per capita rates on their own by dividing the desired number by the target population. This straightforward calculation ensures that accurate per capita values are provided. For example, finding out how much the average person spent on groceries in a small town: if the number for the entire town is around $10,000, and the population is 2,000 people, the per capita amount spent on groceries in said town is $5. The absurdity of groceries costing only $5 a year notwithstanding, researching both sets of numbers—total cost and population—makes for an easy self calculation.
In keeping with the above example, journalists should be judicious when using the term per capita when describing rates. Rates expressed as per 1,000, 10,000, or 100,000 people should not be referred to as per capita rates at all but instead can be represented by simply sticking the word “per” between the numbers. In the example above, a journalist would write that grocery costs averaged $5 per 10,000 people. Per capita starts to come into play when the population numbers go up—usually in reference to an entire country’s population, or a major city, like New York, which is home to 8,000,000.
Per capita does come in handy when comparing countries, states, or regions because it provides a clearer picture to the audience of how all the figures involved compare. Reporting on GDP without including per capita GDP neglects crucial information, particularly when comparing economic prosperity across different populations. For example, the World Bank's data highlights the significance of per capita GDP, using the United States and China as contrasting examples. Although the U.S. had the highest GDP in 2021 ($23.3 trillion), China slightly trailed ($17.7 trillion). However, China's per capita GDP was considerably lower ($12,556) due to its larger population—the U.S.’s per capita GDP was $70,249. This information helps discern the disparities in living standards as well as disparities in quality of life. On the other hand, the U.S.’s income disparities highly outweigh China’s, and China’s income inequality coefficient continues to trend downward.
Per capita figures have the power to reveal hidden stories, societal challenges, and areas in need of improvement. By harnessing the potential of per capita, journalists can contribute to a more informed public discourse, foster transparency, and drive meaningful change in our ever-evolving world. By differentiating per capita from other rates and avoiding mislabeling, journalists uphold their responsibility to present data truthfully and prevent confusion among their audience. Clear and precise reporting helps individuals make informed decisions and empowers them to critically analyze the information they’ve been given.
