Economists question whether growth can improve living standards in the UK
The video features economists Karel Williams and Sukhdev Johal arguing that UK politicians’ pursuit of economic growth per person is misguided. They say decades of policy changes have failed to deliver that growth, and that further growth would not necessarily improve people’s lives.
The discussion considers what life after growth could look like in towns and suburbs. It also points viewers to the economists’ work on inequality, stagnation, the cost of living and the water system in England and Wales.
In short
- Williams and Johal question whether growth should remain the UK’s main economic goal.
- They say decades of policy shifts have not raised growth per person.
- The discussion explores life after growth and related economic research.
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The case for
The economists’ case is that growth per person has not reliably translated into better living standards, and decades of policies aimed at delivering it have not achieved the promised results. They argue that policy should focus more directly on inequality, the cost of living and the quality of local life, while exploring how towns and suburbs could thrive without relying on continual growth.
The case against
Economic growth can expand the resources available for higher wages, public services and investment, which may improve living standards if its gains are broadly shared. On this view, the failure of past policies to deliver growth is a reason to pursue it more effectively, rather than to treat growth as unnecessary; without it, improving services and meeting future needs could become harder.
Explained simply
Economic growth means an increase in the value of goods and services produced, while growth per person adjusts for the size of the population. UK governments have often treated rising output per person as a sign of economic success, in part because it can support jobs, wages and public services.
Economists Karel Williams and Sukhdev Johal study how the economy affects communities and living standards. Their work addresses issues such as inequality, stagnant incomes, the cost of living and the water system in England and Wales.
The debate is about whether a larger economy necessarily makes life better for people, and what changes might matter if growth is weak or not the main aim. It also raises questions about how towns and suburbs could be organised to meet people’s needs.
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Originally published by The Guardian as “Why politicians chasing economic growth is a lie | Radical Thinking with Aditya Chakrabortty”.