Prosperity Without Growth - Essay Example

Prosperity Without Growth The economy is often geared towards growth, with the main aims being to raise the Growth Domestic Product (GDP) and other merits of growth. Indeed, many governments in times of recessions and economic challenges mainly focus their efforts towards achieving growth. However, Prosperity without Growth by Tim Jackson, introduces interesting concepts relating to the evident needs to restructure the economic mindsets and focus on sustainable economic development an opposed to mere notions of growth. Indeed, the rationale behind the propositions of the book has elicited debates in the economic circles, proving the need to critically examine the foundations of its postulations, in terms of practicability and rationality for a better world. Most recently, economists like Tim Jackson have deviated from the notions of economic growth, to incorporate more ideas that lead to sustainable economies. Indeed, the well-being of the individuals and households has taken center stage and the politics have been geared to address these forgotten notions. Indeed, most of the growth that had been the focus of most economies in the past has led to massive boosts in the global economy, but at the cost of the environment and the society (Lovell, 2009). On this grounding, the productions and consumption activities have contributed to more that 60% of the degradation of the eco-systems, raising serious questions on whether this path will lead to sustainable development in the near future. Indeed, only a very small portion of the benefits of the global income is redistributed to the poor, worsening the gap between the rich and the poor. Getting an equitable distribution of resources therefore is one of the reasons that the author points to zero economic growth in prosperity in the world economy. The notion of endless growth has engulfed modern economists, who overlook the social progress related to such kind of growth. Indeed, social stability and development is one of the key pillars of sustainability, which leads to prosperity even in the global economy (Baumol, & Litan, 2012, p. 45). In addition, the convening of countless global economic summits to address economic growth and challenges have not prevented the world from going into countless recessions. On this platform, the capitalist movements seem to postulate an endless path of growth, spurred by economic activities of production, looking for new markets and consumption as the main drivers of growth. From this perspective, the postulation of prosperity without growth comes alive, because this continuous cycle may go on indefinitely without improvements in the standards of living of the masses. Indeed, it is imperative to note that any human activity is geared towards improvement of welfare, and when such a system fails, it would be preferable to have prosperity even without growth in the world. The author, Tim Jackson raises serious questions on growth, in particular to its inability to control the course of modern economic systems. Pointing to the Banking crisis of 2008, it is evident that economies of the time were built on the best models that would lead to economic growth. However, the crisis was a revelation, an instrument with which the world could reassess its approach and rethink its policies towards achieving financial sustainability. Indeed, the neglecting of development and focus on growth have indeed contributed to the failure of markets, as opposed to the postulation that some individuals or states may be behind such crises (Rodrik, 2009, p. 67). The growth notions have led to excessive freedom on the financial sector, which has inadvertently shaped the course of the world economy, as well as the economic policies that are enacted in the modern age. These postulations by the author are clear indications that growth alone deteriorates the economy, makes the sectors vulnerable to sabotage and failure. This has led to the ecological decadence and the countless economic crises, despite the continued focus on growth in the economies. In the book, the notions of prosperity are redefined; mainly to incorporate the human part threat is neglected when everyone focuses on economic growth. Indeed, the misery with which the world populations live in elicits interests on how the human race can be made to flourish, in terms of the achievement of their material needs like food and shelter. Tim however postulates the need to refocus on needs more intricate than just material needs, to incorporate human development in terms of its social and psychological perspective. On this platform, that is the only way that prosperity can be realized, which deviates much from the growth view. Indeed, human prosperity is sustainable as compared to growth, where it empowered individuals to pursue their own interests and achieve greater heights of participation in the society towards development. This is the only route that sustainability can be addressed, in terms of enhancing capabilities and freedoms of individuals, in a way that prosperity can be achieved and not necessarily growth (Rodrik, 2009, p. 64). Indeed, it would be plausible to state that human prosperity is accompanied by increased consumption patterns, which inadvertently leads to sustained economic development and therefore continued patterns of prosperity. The author is quick to point out that the notions of prosperity are not a means to an end in themselves, as growth ensures their sustainability. Indeed, growth is very necessary for any patterns of leading to development, which are the means of acquisitions of material opulence. In this perspective, there is indeed a correlation between the patterns of growth and the human development indicators like good health or education. On this note, it is imperative to note that most approaches have focused on growth alone; laying their focus on the output that is produced at any costs. The major aim of such moves has been to increase measurable output, increase economic growth mostly at the expense of human well being. This postulated dilemma makes the postulations of the author valid, because the sustainable social development and prosperity is more preferable than just an increase in output in the economy. The decoupling concepts are also important features of the book, mainly addressing the concerns that economic growth has been achieved at the cost of declining material available for continued production activities. The evidences postulated by the author in terms of relative and absolute decoupling raises serious concerns over continued patterns of economic growth. Indeed, the increased focus on economic growth is worrying, in the perspective that the declining materials and resources may not lead to sustainability but the lack of more resource and misery. Supported by the evidence given in the fifth chapter of the book, it is apparent that it becomes harder to achieve equitable distribution of resources to the global communities, and prosperity will be increasingly harder to achieve in the near future (Rodrik, 2009, p. 81). It is apparent that maintaining the environment and social sustenance will not be achieved merely by the increased capitalist production and growth theories, but a rather more powerful merit that will surpass theses traditional notions; which is human prosperity. Indeed, the idea of GDP as the determinant of well being is erroneous for the failure to incorporate the asset costs with which the remarkably high rates have been achieved. Indeed, most modern systems lose ground when they focus on individual consumption as the focus on the economic growth of nations, without incorporating the costs to the environment that are associated with such consumption patterns. Further, a comprehensive economic approach should be used that incorporates various aspects like human health, family and satisfaction, which are at the heart of the community’s needs. This is the focus of the “iron cage of consumerism” chapter in the book. There is no need of focusing on the current conditions, if they do not lead to better prosperity in the future for all human beings. Indeed, incorporating sustainability to the macroeconomic equation has been the focus of the author Tim Jackson. Indeed, notable economists like Keynes had postulated that growth was deemed to stop at one moment, and it is therefore important to include variable in the equation that would surpass such an age. (Rodrik, 2009, p. 78) explores the possibility of creating models that incorporate sustenance of human development. There is need to incorporate more than just economic output, to extents that will show human development in terms of wellness, happiness, impacts on ecological systems due to production as well as health and unemployment. This would indeed be a lucrative idea towards the realization of sustainable economic models through incorporation of ideas that show the true picture of the society’s welfare. On the other hand, critics have long battled the possibility of having to incorporate the idea of zero growth and prosperity. Growth is measured in terms of the Gross Domestic Product, which, according to the author does not indicate any ideas towards prosperity. On the other hand, prosperity incorporates many human spheres of development like health and education. Indeed, achieving such a hypothetical world is next to impossible (Bluestone & Harrison, 2008, p. 42). His vision postulates a society geared towards achievement of full employment and activities, which do not degrade the environment, on which hypothetical studies have proved such an idea purely theoretical and impractical. It is hard to disassociate the two dependent ideas, and fails to incorporate the chaos, greed and wars that characterize human existence which undermine prosperity in most of the instances. British economists have pictured Jackson’s ideas as rogue, which give unachievable propositions on macroeconomic policies (Klawitter, 2011). It is left in question what kind of world the idea would fit in, given that he criticizes capitalist postulations that have worked through the ages. Indeed, he is considered an oddball in the economic spheres, by postulating the capitalist systems as greedy and old fashioned. Indeed, the capitalist notions of production, efficiency and continued growth have brought the developments that humans can boast of in the present world. Capitalism, though with its imperfections has contributed much to the wealth of nations, which leads to the improvement of human lives. Indeed, his postulation of a fixed and efficient economy that has no pollution or depletion loses ground based on rationality. In conclusion, growth is not the only merit that determines welfare, but prosperity would provide a better approach to the question. In this perspective, the author is right to postulate the need to devise better methods that incorporate critical aspects of human development. However, a critical analysis of the idea reveals that growth is a essential condition for prosperity, and a careful integration of the ideas would lead to the improvement of human life. References Baumol, W. J., & Litan, R. E. (2012). Good capitalism, bad capitalism, and the economics of growth and prosperity. New Haven: Yale University Press. Bluestone, B., & Harrison, B. (2008). Growing prosperity: The battle for growth with equity in the twenty-first century. Boston: Houghton Mifflin. Klawitter, N. (2011). Critics Propose Economy with Less Growth and Environmental Damage - SPIEGEL ONLINE. Retrieved February 20, 2014, from http://www.spiegel.de/international/business/critics-propose-economy-with-less-growth-and-environmental-damage-a-897550.html Lovell, J. (2009, November 17). Can You Have Prosperity Without Growth? - NYTimes.com. Retrieved February 20, 2014, from http://www.nytimes.com/cwire/2009/11/17/17climatewire-can-you-have-prosperity-without-growth-10334.html?pagewanted=all Rodrik, D. (2009). In search of prosperity: Analytic narratives on economic growth. Princeton: Princeton University Press. Read More