The Forum > Article Comments > Increasingly uncomfortable living in a material world > Comments
Increasingly uncomfortable living in a material world : Comments
By Richard Eckersley, published 23/1/2006Richard Eckersley argues optimism about the quality of life has slumped among Australians.
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The sort of economic growth that we have in Australia is not good for pensions, healthcare, education, etc, because it is growth generated by population growth. The per-capita growth rate is tiny even in economic rationalist terms, and negative in real terms when you factor in all the added pressures that an ever-greater demand on our resource base and environment create, as well as increasing social pressures. Current economic growth is essentially just providing a similar standard of living for more and more people.
It is a mindless self-defeating spiral; more economic growth is needed for an ever-larger population, but an ever-larger population is very strongly promoted in order to boost economic growth. It can’t get much crazier, especially with the blindingly obvious stresses and limitations evident with primary resources and environment.
We have had strong economic growth since the last so-called recession in 1991. But it hasn’t led to much in the way of continued improvements.
If economic growth could be confined to new technologies and better efficiencies that lead to real average per-person gains, without more rapidly depleting non renewable and potentially renewable resources or leading to environmental degradation, then fine. That’s the sort of growth we want. But our economic growth is almost entirely based on the continued increase in rates of resource consumption and expansion in the overall extent of economic activity.
That’s not going to help pay for healthcare or for an aging population. It will do precisely the opposite; it will more rapidly stress out our whole society, which means things will be cut back further and further.
If we want to be able to cover the forthcoming ‘bulge’ of baby-boomers reaching retirement age, we need to desperately stabilise the size of our economy and population and concentrate on improved efficiencies in industry and resource usage, fiscal policies that better distribute wealth, especially regarding taxation of the rich and of big business, and incentives to keep would-be retirees in the workforce.