CitiesGoGreen - December 2008 - (Page 27)

The Economics of What Matters Matter The GDP is a Misleading Indicator by Mark Anielski This was written before the recent financial market collapses, making it rather prescient. Canadian economist Mark Anielski questions whether traditional economic measures and assumptions are producing the results they promise or guiding us astray. How can we assess community well-being in meaningful and useful ways? W W hat has become of the pursuit of happiness? The promise of America, as penned by Thomas Jefferson in the Declaration of Independence, is “…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.” Since World War II, a rising Gross Domestic Product (GDP) has been touted as the way to happiness as well as the way to resolve all social and environmental ills. Yet in 1968 in a speech at the University of Kansas, Robert Kennedy identified the GNP (Gross National Product, the forerunner of GDP) as the flawed measure it is: Too much and for too long, we seem to have surrendered personal excellence and community values in the mere accumulation of material things. Our Gross National Product… counts air pollution and cigarette advertising, and ambulances to clear our highways of carnage. It counts special locks for our doors and the jails for the people who break them. It counts the destruction of the redwood and the loss of our natural wonder in chaotic sprawl. It counts napalm and counts nuclear warheads and armored cars for the police to fight the riots in our cities. …Yet the gross national product does not allow for the health of our children, the quality of their education or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country, it measures everything in short, except that which makes life worthwhile. As an economist, I began wondering if the promise of economic growth was being fulfilled because I sensed in my own life and in my community that it was not. I began asking, “Has more money and more economic growth brought more happiness into our lives?” I found that despite a 164% increase in real (adjusted for inflation) GDP, a 229% increase in real personal income, a 250% increase in personal spending and a 12,254% increase in stock market capitalization values, the number of Americans who say they are very happy has actually declined since the early 1950s. At the same time, many quality of life and ecological health indicators have also declined, and rates of depression, suicide and anti-depressant drug use by our youth have increased. Our children say adults are too consumed with making money—that they wish their parents spent more quality time with them. Why do we continue to pursue economic growth despite declining happiness? And what would be better? The emerging field of Happiness Economics considers these to be central questions. For decades economics has defined human beings as “utility maximizers” or simply as “consumers.” Yet new research by psychologists and sociologists is revealing that money, material possessions and education contribute only 10% to a person’s sense of well-being. Far more important is the 40% that derives from enduring and healthy relationships with family, friends, colleagues and neighbours. These are some of the signs of strong and resilient communities, where people feel a strong sense of belonging, know their neighbours by first name and experience sharing, reciprocity and trust. The remaining 50% of our well-being derives from the genes we are born with and the conditions of our childhood and teenage years, the latter again influenced by quality of community and relationship experienced, rather than money. My question became, “How can economic development be reoriented toward real, enduring happiness?” December 2008 27 http://citiesgogreen.com/issues/december-2008/features/the-economics-of-what-matters http://citiesgogreen.com/issues/december-2008/features/the-economics-of-what-matters http://www.ushistory.org/declaration/document/index.htm http://www.ushistory.org/declaration/document/index.htm http://www.jfklibrary.org/Historical Resources/Archives/Reference Desk/Speeches/RFK/RFKSpeech68Mar18UKansas.htm http://citiesgogreen.com

Table of Contents Feed for the Digital Edition of CitiesGoGreen - December 2008

Citites Go Green Contents In Motion We’re Taking Steps 10,000 Rain Gardens in Kansas City Chicago Center for Green Technology Connecticut’s ‘One Thing’ Green Infrastructure for Stormwater Management Philadelphia The Economics of What Matters New Context: New Possibility

CitiesGoGreen - December 2008

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