Well-being and Growth in Advanced Economies

<p>Economic growth is generally regarded by governments and most ordinary people as a panacea for all problems including issues caused by the COVID pandemic. But this raises an important question: is further growth in advanced economies able to increase well-being once people’s basic subsistence needs are met? Some advanced market economies e.g. the United States have exhibited a decline in well-being both subjectively and objectively measured over several decades despite seeing economic growth during the same period. </p><p>This book provides an original and comprehensive explanation: economic growth as driven by market forces induces people through both the demand- and supply-side channels to pursue command over more material resources and this weakens the self-generation of capabilities putting well-being at risk of deterioration. The book argues with the support of a variety of evidence that the challenge can be overcome if governments’ policies and people’s choices pursue as their ultimate goal ‘fundamental human development’ on an evolutionary basis: the development of the capability of a typical person to conceive and share with others new purposes to pursue them individually or collectively and thus to contribute to building human culture. If such human development is prioritised it makes people satisfied with their lives and resistant to adverse shocks and it can even shape the pattern of economic growth. By contrast if economic growth is prioritised it tends to weaken and impoverish fundamental human development and consequently people’s well-being and social cohesion. </p><p>With this volume readers will find an answer to a problem that is both urgent and long-term both individual and societal. The work makes a substantial contribution to the literature on wellbeing the economics of happiness human capital and growth and the capability approach. </p>