Economic growth underpins modern society, yet the current model is unsustainable and leads to inequality. The growth debate is often polarised, with one side arguing for unfettered growth and the other advocating for no growth, both of which are flawed perspectives. A more nuanced approach is required, focusing on ‘good growth’ that is sustainable, inclusive, and improves living standards.
The Gross Domestic Product (GDP) is a flawed measure of a nation’s success, as it fails to consider environmental sustainability, inequality, and well-being. Alternative measures, such as the Genuine Progress Indicator (GPI), which includes social and environmental factors, should be adopted.
The ‘degrowth’ movement, which advocates for an economy that prioritises environmental and social well-being over growth, is gaining traction. However, it faces challenges, such as the risk of job losses and the need for a significant societal shift.
Innovation is crucial for fostering good growth. It can help create new industries and jobs, reduce environmental impact, and improve living standards. However, innovation must be directed towards socially beneficial outcomes.
To achieve good growth, governments must implement policies that promote innovation, redistribute wealth, and transition towards a sustainable economy. Society must also shift its focus from material wealth to well-being. This requires a nuanced and informed debate about the kind of growth we want.
Go to source article: https://www.nesta.org.uk/blog/what-kind-growth-do-we-want-and-why-are-we-still-having-wrong-arguments/