Economic growing pains Flashcards
How do we measure well-being?
judged by how well nations are implementing policies to grow market-activity economy, improve productivity, reduce barriers and open market globally
Is GDP the right way to measure well-being?
it fails to measure social-welfare and doesn’t indicate distribution of wealth or human/ natural capital
Are there other indicators?
GPI (=genuine process indicator)
only takes goods and services into account that improve public-well being
macro-level: promoting genuine progress based on multiple dimensions of human well-being, fostering rapid transition to a renewable energy platform, equitable distribution of resources and opportunities, protecting and restoring natural capital, economic localization
micro-level:
certification of products, operations and supply chains, zero waste, eco-efficiency, workplace well- being, community vitality
What is the doughnut model by Kate Haworth?
social and Planetary Boundaries as a frame for well-being,
economy depends on flow of materials and energy -> we are more than just workers
within doughnut: companies seek to reduce inequalities
social foundation -> short-falls in well-being, 12 dimensions
ecological ceiling -> overshoot press of earth’s life support systems, 9 dimensions
aims to meet the needs of all people within the means of the planet
What is uneconomic growth?
at some point the economy needs to stop growing but there is no need for it to stop developing,
uneconomic growth occurs when increases in production come at a use of resources and well-being > items produced
uneconomic growth occurs when disutility exceeds utility (costs are higher than benefits)
utility: level of satisfaction of community’s needs and wants -> populations level of well-being
disutility: sacrifices made necessary by increasing production and consumption -> use of labor, loss of leisure, depletion of resources, exposure to pollution
unlimited resources and limited resources
