There is Nothing Naïve About Building an Alternative to Our Broken Economic System
Those who claim we are living in an era of 'unprecedented prosperity' turn a blind eye to the suffering of people and planet.
A few weeks ago I spoke on a panel at an economics conference alongside an academic who specialises in analysing results from surveys that ask people how they feel. These are the kind of surveys that ask people to rate how happy or anxious they are on a scale of 1-10, which in turn inform the evidence base of ‘subjective self-reported wellbeing’.
The results from these surveys certainly matter, but they do not depict the whole story of how a society is doing. To put it simply, you could report being very happy in an economy that is doing a lot of damage to the environment, becoming more unequal, or failing to ensure everyone has their basic needs met. But that’s another story.
What was interesting (and irksome) was his response to my suggestion that we need a new economic system. A system that does not see nature as simply an input to the production of things and a waste sink at the end of the production processes; but one that enables people to collaborate and build strong communities; that attends to reducing the inequalities that separate people from each other. In response to this, the academic declared that this was “fluffy bunny stuff”, and that I was being naïve.
This was not the first time I have been called naïve. As with this panel, every previous instance has been from a man older than me who seems to pride himself as a defender of the current economic system. The naïve insult is hurled to give the impression that to even think that things might be done differently is daft, and that serious and sensible people do not talk about changing the economic system.
My fellow panellist told the audience that if they “look at the data” they will see that things are fine in the UK, that the welfare state is working well, that people are naturally competitive, and that inequality doesn’t matter.
The problem is that just as only looking at how happy people say they are, does not provide the whole picture; by only looking at selected pieces of information, defenders of the status quo effectively turn a blind eye to the mounting evidence against it.
There are many examples of this. For example, data is often subject to the tyranny of averages, as is the case with GDP per capita which masks the extent of inequality. Moreover, looking at headline employment statistics misses that many of those in work are not earning enough to live on and are turning to food banks. And while average subjective self-reported wellbeing in countries like the UK might be relatively high compared to other countries around the world, it misses the growing number of people self-harming or feeling stressed or lonely.
Furthermore, those who say that we are in an era of unprecedented prosperity conveniently disregard the impact that the creation of this ‘prosperity’ has had on the natural world. And even if, when pushed, they recognise that the environment matters, they tend to point to ‘green growth’ or casually say that things are fine due to the potential of decoupling CO2 from GDP growth. But that again ignores other aspects of environmental breakdown, and that decoupling is often achieved by offshoring to other countries – like a child sweeping their toys and books under the bed in order to tell their parents their bedroom is tidy.
As my intellectual hero Maja Gopel says, the burden of proof now sits with those who claim the current economic system is working fine or – perhaps worse – that it is the best we can do.
The defenders of the status quo need to explain why ‘keeping calm and carrying on’ will sufficiently attend to the interlocking crisis: how it will give people a sense of control over their lives; how it will ensure they are optimistic about the prospects of their children; how it will stop the world plunging into dire climate change; how it will bring people together rather than push them apart behind gated communities and twitter bubbles.
Fortunately, those of us working on building a wellbeing economy can do this. We can explain how a new economic system which is geared up around the purpose of human and ecological wellbeing will attend to these questions, and how it will be better for current and future generations. That, of course, doesn’t mean that shifting to such an economy will be easy, it just means the possibility is there.
Returning to that panel.
As an Australian, from a country where rabbits were introduced and did great damage to native flora and fauna, I’m not the biggest fan of bunnies.
But in the context of asking who really is naïve in discussions about the economy and the future of society and the world, then I am proud to be a fluffy bunny.
Katherine Trebeck is a research and policy adviser with Oxfam.
This article was originally published at openDemocracy and has been republished under the Creative Commons licence.