Is Growth a False God?

Last week’s budget was, according to the Chancellor, about growth. Whenever politicians talk about their plans these days, it’s always about growth. The arguments are clear: Until we generate more growth, we can’t get any richer and wages can’t increase either. It’s urgent too: The UK will be the only major economy apart from Russia to shrink this year, according to forecasts from the OECD. But not everyone is convinced that increasing growth makes us happier, or even that it’s sustainable.

Some believe the pursuit of growth attaches too little value to wellbeing, that it neglects what should be the real priority, people’s contentment and happiness. Government policies lead us, they claim, to work harder and for longer than we want to. They suggest it creates a culture that values our economic activity, earning money and spending it, over other important roles such as caring for children and elderly relatives, maintaining our community, or charitable work. Some ecological economists believe that endless growth is unachievable without climate breakdown, that it simply can’t be sustained without irreversible damage to the planet.

What is the moral case for the pursuit of growth? The political orthodoxy is that a growing economy is good for everyone. Growth drives up pay; welfare payments depend on tax revenues; pension providers rely on stock market growth for their returns. So don’t we all have an interest in continuous growth? Or have we created a world where our leaders care more about GDP than our happiness? Has growth become a false God?

Producer: Jonathan Hallewell