This time I feature an interesting commentary from a friend of mine with an sharp and controversial mind.
Enjoy the different view of the world as you experienced already in the commentaries before.
It was in the 1980s that the king of Bhutan, Jigme Singye Wangchuk declared that :
“Gross National Happiness is more important than Gross National Product.”
He was of course referring to his country at the time but the concept has universally gained ground over the last two years.
Gross National Happiness comprises of four pillars that embody national and local values, aesthetics, and spiritual traditions.
1. equitable and equal socio-economic development,
2. preservation and promotion of cultural and spiritual heritage,
3. conservation of environment and
4. good governance which are interwoven, complementary, and consistent.
The dogma of growth at all costs is over. Economists led by the flagship, the Economist magazine, have traditionally argued that economic growth is the essential basis for the continued well-being of society and GDP is the statistic used to measure it. From a political viewpoint, growth means employment. Even Angela Merkel has been talking of growth at all costs. On the other hand, President Sarkosy of France has established a Commission on the measurement of Economic Performance and Social Progress which has attempted to replace GDP with a broader measurement including the quality of ordinary lives.
The US declaration of independence
WE hold these Truths to be self-evident, that all Men are created equal, that they are endowed by their Creator with certain unalienable rights that among these are Life, Liberty, and the pursuit of Happiness.
I do not dispute the fact the economic growth is essential for businesses to grow and prosper. Then again periods of slow growth or recessions are also essential for the shake out of non-productive and inefficient industries and companies to allow for the rise of new technologies and innovations.
Unfortunately the recent history of present governments has been to prevent this natural process by subsidising ailing industries at all costs to prevent rising unemployment. The concept of short-term growth became a religion in it‘s own right. So far, this still seems to be the case as governments do not seem to have any other solution to the present debt crisis than by providing more debt, or pouring more petrol on the fire with the hope of putting it out.
In all previous recessions over the last thirty years the mood of the people hit their lowest points in those periods. Why is it then that, despite the recession, the Happiness index in the US has increased this year?
According to Nancy Gibbs in a Time article, it is all about what she calls, the “expectation index.” During periods of economic growth, our expectations for the future outpace our growth of income, or spending power. We expect our overall living standards to continually improve with better cars, new stereo systems, strawberries at Christmas, etc….
These expectations were magnified by the huge artificial wealth created by the arrival of the credit card, hire purchase and other means of cheap debt that the governments encouraged and supported to achieve the goal of short-term growth.
This inflation of expectations is a burden on our happiness just as much as the inflation of money is a burden on our wealth.
So now, as the reality of the severity of the crisis sinks in and people start to earn and save once more rather than borrow and spend, the inflation of expectations reduces and there is almost a relief that it is over.
No comments:
Post a Comment