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Economic growth at any cost! A deceptive mantra

JP/Ricky YudhistiraIf there is one thing that the large majority of world leaders, economics gurus, multinational companies, international organization and most social, economic, and political elites agree on is that economic growth is fundamental to secure the well-being of humanity and world stability

Patrik K. Meyer (The Jakarta Post)
Yogyakarta
Wed, October 16, 2019

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Economic growth at any cost! A deceptive mantra

JP/Ricky Yudhistira

If there is one thing that the large majority of world leaders, economics gurus, multinational companies, international organization and most social, economic, and political elites agree on is that economic growth is fundamental to secure the well-being of humanity and world stability. That is, economic growth at any cost. In simple terms, economic growth is an increase in the production of economic goods and services, compared from one period of time to another and it can be “considered among the most crucial indicators that are released” to measure how an economy is performing. As a result, “boosting economic growth becomes far and away the most important public policy concern” in most countries.

A softening of economic growth is seen as a threat to most of what a modern society yearns for. Headlines such as the World Bank’s “The global economy: Heightened tensions, subdued growth” and “Darkening prospects: Global economy to slow to 2.9 percent in 2019 as trade, investment weaken.” Or the latest International Monetary Fund report warning of “Growth slowdown, precarious recovery” due to “a weakening global expansion” could lead to a new global recession that would result in all kinds of sufferings.

In its analysis of economic prospects for 2019, the World Bank worries about the fact that “global growth has continued to soften this year [...] dampening prospects and impeding progress toward achieving critical development goals”. It continues arguing that policymakers should become aware of the risks of this softening entails and are strongly advised to “foster long-term growth”. Economic growth at any cost must be achieved.

Some challenge the type of economic growth and the way it is measured, but do not dismiss the concept that economic growth needs to be achieved. Nobel Laureate in Economics Joseph Stiglitz argues that the gross domestic product “is not a good measure of economic performance; it is not a good measure of well-being”. America’s late president John F. Kennedy wanted economic growth too, but one with social progress to ensure that not only the privileged few “reap the benefits of rising abundance”, but also one that people are lifted out of poverty.

The few voices who challenged the need of economic growth, such as Alexander Solzhenitsyn, who argued that “economic growth is not only unnecessary, but ruinous” are muted by the loud “economic growth, economic growth […] at any cost” mantra.

Despite productivity in developing countries having seen a 30 to 80 fold increase in the last 100 years, economic growth is still preached as a fundamental necessity to ensure people’s wellbeing. For example, thanks to advances in technology and science farm labor output in the United States has grown more than 50 fold since 1910.

Despite this massive increase in productivity, people spend most of their time and energy on making a living working 40 to 50 hours a week, and still feel that their survival is not secured. And if we let economic, political or social elites decide how long people should work, the working time will not be reduced anytime soon. Alibaba’s Jack Ma encourages the young generation to seek fulfillment in the “996 model”, which promotes a working schedule from 9 a.m. to 9 p.m., six days a week; i.e. 72 hours per week. One might ask: why is working time still increasing despite the massive increase in productivity? The answer is simple: consumerism.

Consumerism is “the human desire to own and obtain products and goods in excess of one’s basic needs” and has been deceivingly promoted as the new social and economic order and path to individual and social success.

This is because and ever expanding consumption of goods and services is the fuel for economic growth. Consumerism drives the economy and is entrenched in culture, making people feel that they constantly need to buy the newest products to keep up with the consumption race. Producing and consuming 10 or 20 times more than what people really need burns most of people’s time and income, leaving very limited resources for anything else.

Encouraged by consumerism, people are enslaved by their own imagined consumption needs.

In addition, the addiction to consumption fomented by the economic growth at any cost mantra does not only keep people enslaved and unsatisfied, but it also results in the unnecessary destruction of the environment vital for the human civilization to thrive. An example of the damage caused by excessive consumption is that “if food waste were a country, it would be the third greatest greenhouse gas emitter”. Besides food, there are numerous other areas where people are encouraged to waste, such as consumer electronics, fashion, car industry, and many more.

If the common person and irreplaceable environment are not the beneficiaries of economic growth, who is it then? The elites are.

Economic, political, social and military elites are the net beneficiaries from economic growth fueled by consumerism in developed economies.

In the past, elites have consistently used their privileged positions and access to resources for self-serving purposes, not for the greater good of humanity.

Now, elites continue doing so and some of them, ailites ('emerging generation of elites super-powered by artificial intelligence') have harnessed artificial intelligence to super-power their manipulation of people’s desires and needs to levels previously unimagined of. Elites’ wealth is expanding to outrageous levels, while the large majority is struggling to keep up with the destructive consumption race.

Common people have to spend most of their time and energy to fulfill imaginary consumption needs, leaving them with little time to ponder over the meaningfulness of the need to promote economic growth at any cost as elites and ailites preach.

While economic growth is fundamental to improve the living standards in developing countries, seeking economic growth fueled by consumerism in developed economies brings with it numerous detrimental consequences.

Most significantly, it results in the economic enslavement of people in a never ending consumption race and the destruction of the vital environment in which humanity as thrived for millennia. Elites and ailites are the authors, promoters and primary beneficiaries from the “economic growth, economic growth at any cost” mantra.

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New America Security fellow, visiting professor at the Universitas Muhammadiyah (Muhammadiyah University), Yogyakarta.

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