Benign Degrowth
Our lives today are no different from a monkey in the "5 monkeys" experiment. All of us chase so many targets in myriad forms may it be marks, money, sales targets but we forget what we truly desire. We tend to run behind what everyone wants us to have rather than what we truly want. Such experiments and related articles make me wonder if chasing meaning and enjoyment in life is more crucial than coveting achievements and learning. If all citizens in a democratic society yearn enjoyment, equality, and happiness more than capitalism and growth, shouldn't we look at numbers other than GDP to measure if the country has progressed? Shouldn't we yearn Degrowth?
To a few readers, it may sound like a naive idea but it is all but immature. Its sounds live a narrative violation partly because of our 5 monkeys and largely because it sounds counter-intuitive to what we chase everyday. Many would think, as I initially thought, that the idea of degrowth is absurd and unrealistic. However, the idea of continuous growth is even more unreasonable and illogical (Remember diminishing marginal utility). We can never keep on growing for eternity. The idea of degrowth spawned partly because expecting to grow forever is unrealistic and largely because of the impact of pursuing aggressive growth. This idea is supported by many economists and was even mentioned in IMF's 2015 outlook. An interesting question to ask would be, why not grow till the curve flattens out. Increasing economic divide, rising waste & pollution, enhanced commodification, and consumerism all violate societal altruism and social well-being. Even investing in technology does not bring efficiencies in long term which eventually is harmful.
In economics, the Jevons paradox (/?d??v?nz/; sometimes Jevons effect) occurs when technological progress or government policy increases the efficiency with which a resource is used (reducing the amount necessary for any one use), but the rate of consumption of that resource rises due to increasing demand.
More importantly, does chasing growth lead to a better society. Well, only momentarily money can buy happiness. In the long term, meaning and enjoyment are the 2 biggest drivers of happiness. Similarly, nations may not be happier if they have a higher GDP. Is America happier than India?
The 'Easterlin Paradox' states that at a point in time happiness varies directly with income both among and within nations, but over time happiness does not trend upward as income continues to grow.
It is more important to understand the meaning of the proposed policy changes. Although Degrowth sounds like an ardent enemy of growth it is not so. Degrowth simply means abandoning an obsession to grow and devote time money and effort to other avenues to make a sustainable and just society. Better healthcare and medicine flourishes as wellbeing and happiness is paramount. Only then the definition of democracy (A democratic government is by the people, of the people, and for the people) becomes true to its words.
Another reason why I felt nations ardently follow GDP as a measure of growth was that GDP as a matric was easily quantifiable and measured. Moreover, measuring happiness and meaning or welfare and equality might not be possible. Contrary to what I thought was true, there are numerous alternatives to GDP. To name a few, Genuine progress index (GPI), UN human development Index (UNDI), Gross sustainable development product (GSDP), Gross Environmental sustainable development Index (GESDP). Then why does everyone pursue growth? Well, refer to the experiment.
Bibliography: Degrowth: Vocabulary of new Era - For anyone who is interesting in learning more about this concept must read this book, written in a research format but still understandable to a person with a fair understanding of economics,