Ideas Lost in Time

The process of societal change – in attitudes, institutions, values, relationship patterns etc. – is accelerating steadily in modern societies. Their members are losing their ability to accommodate to these changes. Furthermore, since our basic needs are fulfilled, we engage more and more in competition for goods that some can have – but not all at the same time, not without serious quality deterioration at least. Moreover, we are working much to be able to pay for consumer goods that we cannot really consume because our time budget does not allow for it any more. This does not stop us from desiring even more consumer foods and from uselessly working to earn the money we need to pay for them. At the same time, whereas GDP has been growing continuously (with only minor periods of regress) for years, the satisfaction we draw from our lives has been at best stable in that time, since our aspirations change as fast as the economy (and our incomes) grows. Last but not least, this growth in production and consumption, as well as population, has led to a terrible, unsustainable level of use of Nature’s resources and services, which can in effect lead to a break down of the world economy.

What do these insights have in common? They were all made some 40 years ago, and little seems to have changed to the better – rather the contrary. Continue reading

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Is Happiness a Good Indicator of Quality of Life?

In 1972 the King of the Himalayan nation of Bhutan introduced a fairly new and unconventional concept of social and economic progress measurement – Gross National Happiness. It is a symbol and a manifestation of the ever more widespread belief that GDP and its derivatives (GNP, GDI, GNI etc.) don’t provide what was long thought they do – an imperfect but nevertheless sensible proxy for a nation’s well-being. However, this raises the question: is happiness a better measure. There are reasons to believe that it is not. Continue reading

Jeffrey Sachs on Economic Growth and Happiness

[H]appiness is achieved through a balanced approach to life by both individuals and societies. As individuals, we are unhappy if we are denied our basic material needs, but we are also unhappy if the pursuit of higher incomes replaces our focus on family, friends, community, compassion, and maintaining internal balance. As a society, it is one thing to organize economic policies to keep living standards on the rise, but quite another to subordinate all of society’s values to the pursuit of profit. [more]

Living in the Over-developed World

While reading the collection of essays “Economics, Ecology, Ethics” edited by Herman Daly, in “Humanity at the Crossroads” by Paul and Anne Ehrlich I found a very interesting term – overdeveloped countries. Normally, when we speak about, say, the U.S. or Japan or the member states of the European Union, we call them “developed countries” or, as a whole, the “developed world” – in contrast to the “developing world”, consisting mainly of African, Latin American and Asian countries.

Can any country “overdevelop”, as the Ehrlichs implicitly claim? I would argue that yes: not only is this possible – it is actually the reality in many richer societies of this world. So, instead of calling them “developed”, we maybe should use the term “overdeveloped” instead. Continue reading