Manifesto For a Low-Growth World

Escher Economics

Trying to find a way out of the economic trap that we currently find ourselves in is like attempting to escape from one of those Escher drawings in which stairs spiral round on themselves forever and you find yourself walking up a staircase, upside down. Multiple generations of people have experienced nothing but economic growth, fuelling a consumption frenzy that our rulers are still trying to keep going but, without the vital elements of either growth or debt, we have, temporarily at least, reached the end of the cycle and the bills have to be paid.

The pain that this is engendering amongst consumption minded electorates is seeing political parties thrown out of power for being in the wrong place at the wrong time, and replaced by those that have no better ideas. The key, however, lies not in economic growth but in focusing minds on relative wealth. Being wealthier than your brother-in-law keeps you happy, and happiness is the vital issue in the new world of behavioral economics.

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Gross National Happiness

Himalyan Happiness

The tiny state of Bhutan, wedged between India and China up in the Himalayas, is the only country in the world that rates its progress based on Gross National Happiness (GNH) rather than Gross National Product (GNP). Despite the UK's best efforts Bhutan is unique and its experiment is unlikely to catch on across the developed world, but there are more than a few people who think they may have a point.

Firstly there’s the question of what GNP is actually measuring and whether it’s the sort of thing we should be aiming to increase year on year. Secondly there’s the even more fundamental question: what’s the purpose of life? If the answer to that isn’t money then economists need to think very carefully before they start remodelling the world again.

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