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this post was submitted on 24 Mar 2024
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Current metrics of the economy will show that it tanks. But we have known for ages that these metrics are at best wrong and at worst devastating to the planet and people on it - since leaders and policy-makers use them to allocate resources in ways that show up-and-to-the-right graphs.
It first occurred to me when hearing about Japan's "lost decade". Japan is by no means perfect, but when you visit you find a place where people have their material and social needs taken care of. If you read economists though you would think that the country was doomed.
Similarly after the housing bubble burst we had job losses and other problems in Holland the same as in other places. But looking at the metrics of wealth per capita, we basically were back in the same place as less than a decade before. Was life so horrible in 2004 that this was a huge tragedy? If you are insisting on constant improvement by some arbitrary measurement, then yes.
For me the biggest example was COVID-19. We showed that if it was important that we could have a way of life with drastically less environmental impact to the planet. We surely don't want to live exactly like that, but we could make radical changes to have a better world for ourselves and our children (yes, even with drastically lower birthrates there will still be people on the future earth).
Luckily there are rebels in economics fighting against the orthodoxy. If you want to feel a bit of hope (mixed with a large dose of pragmatism) you can check out the Economics for Rebels podcast.