6 ms·

You make a very good point. However, the obsession with economic growth itself isn't the problem - it's how economic growth is measured. As an example, if a hur

by bwanab 12y ago

You make a very good point. However, the obsession with economic growth itself isn't the problem - it's how economic growth is measured. As an example, if a hurricane sweeps through Florida doing billions in damage, Florida is surely worse off, but because of the rebuilding activity that follows, it will register significant growth. As you state, we need to think about what makes people happy. Economics is a great tool to do that, but it will require a rethinking of how the economy is measured.

ArkyBeagle 12y ago
I think (macro) econ is a lousy tool for measuring happiness. Micro might be. Now, some parts of the various econs - like the theory of revealed preferences* - may well be useful in measuring or talking about happiness but taken as a while, it is IMO incumbent on economists to be humble about this. *which teaches us that what people say and what they do are two very different things.
collyw 12y ago
This reminds me of when Windows Vista (or was it Windows 7) came out, Microsoft claimed it would lead to more growth, through all the upgrades that would need done. So more work needing done leads to more "growth". There is something backwards in that thinking to me.
rohansingh 12y ago
The example you gave about Florida is actually very old, and is summed up in the "parable of the broken window": http://en.wikipedia.org/wiki/Parable_of_the_broken_window http://en.wikipedia.org/wiki/Parable_of_the_broken_window As you can see in the Wikipedia article, there are actually many different interpretations and views on whether or not that rebuilding adds value to the economy.
TeMPOraL 12y ago
I disagree. The economic growth is very much the problem. You can multiply abstract integers all you want and everything will be fine, but unfortunately the economy is coupled with the real world. Exponential growth means exponentially increasing resource use and energy needs, which is simply unsustainable. We need to cut off that exponent, or else the only singularity we will hit will be the brick wall of "oh shit, we just run out of habitable planets".

by bwanab 12y ago

ArkyBeagle 12y ago

I think (macro) econ is a lousy tool for measuring happiness. Micro might be. Now, some parts of the various econs - like the theory of revealed preferences* - may well be useful in measuring or talking about happiness but taken as a while, it is IMO incumbent on economists to be humble about this. *which teaches us that what people say and what they do are two very different things.

collyw 12y ago

This reminds me of when Windows Vista (or was it Windows 7) came out, Microsoft claimed it would lead to more growth, through all the upgrades that would need done. So more work needing done leads to more "growth". There is something backwards in that thinking to me.

rohansingh 12y ago

The example you gave about Florida is actually very old, and is summed up in the "parable of the broken window": http://en.wikipedia.org/wiki/Parable_of_the_broken_window http://en.wikipedia.org/wiki/Parable_of_the_broken_window As you can see in the Wikipedia article, there are actually many different interpretations and views on whether or not that rebuilding adds value to the economy.

TeMPOraL 12y ago

I disagree. The economic growth is very much the problem. You can multiply abstract integers all you want and everything will be fine, but unfortunately the economy is coupled with the real world. Exponential growth means exponentially increasing resource use and energy needs, which is simply unsustainable. We need to cut off that exponent, or else the only singularity we will hit will be the brick wall of "oh shit, we just run out of habitable planets".