Who said this? "All the evidence shows that beyond the sort of standard of living which Britain has now achieved, extra growth does not automatically translate into human welfare and happiness." Was it a) the boss of Greenpeace, b) the director of the New Economics Foundation, or c) an anarchist planning the next climate camp? None of the above: d) the former head of the Confederation of British Industry, who currently runs the Financial Services Authority. In an interview broadcast last Friday, Lord Turner brought the consumer society's most subversive observation into the mainstream.
In our hearts most of us know it is true, but we live as if it were not. Progress is measured by the speed at which we destroy the conditions that sustain life. Governments are deemed to succeed or fail by how well they make money go round, regardless of whether it serves any useful purpose. They regard it as a sacred duty to encourage the country's most revolting spectacle: the annual feeding frenzy in which shoppers queue all night, then stampede into the shops, elbow, trample and sometimes fight to be the first to carry off some designer junk which will go into landfill before the sales next year. The madder the orgy, the greater the triumph of economic management.
As the Guardian revealed today, the British government is now split over product placement in television programmes: if it implements the policy proposed by Ben Bradshaw, the culture secretary, plots will revolve around chocolates and cheeseburgers, and advertisements will be impossible to filter, perhaps even to detect. Bradshaw must know that this indoctrination won't make us happier, wiser, greener or leaner; but it will make the television companies £140m a year.
Though we know they aren't the same, we can't help conflating growth and wellbeing. Last week, for instance, the Guardian carried the headline "UK standard of living drops below 2005 level". But the story had nothing to do with our standard of living. Instead it reported that per capita gross domestic product is lower than it was in 2005. GDP is a measure of economic activity, not standard of living. But the terms are confused so often that journalists now treat them as synonyms. The low retail sales of previous months were recently described by this paper as "bleak" and "gloomy". High sales are always "good news", low sales are always "bad news", even if the product on offer is farmyard porn. I believe it's time that the Guardian challenged this biased reporting.
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http://www.guardian.co.uk/commentisfree/2010/jan/04/standard-of-living-spending-consumerismMonbiot goes on to refer to this paper by an economist calling for a new measurement of "omprehensive wealth per capita" - "not only manufactured capital, knowledge and human capital (education and health), but also natural capital (e.g. ecosystems)"
In this paper, I formalize the idea of sustainable development in terms of intergenerational well-being. I then sketch an argument that has recently been put forward formally to demonstrate that intergenerational well-being increases over time if and only if a comprehensive measure of wealth per capita increases. The measure of wealth includes not only manufactured capital, knowledge and human capital (education and health), but also natural capital (e.g. ecosystems). I show that a country's comprehensive wealth per capita can decline even while gross domestic product (GDP) per capita increases and the UN Human Development Index records an improvement. I then use some rough and ready data from the world's poorest countries and regions to show that during the period 1970–2000 wealth per capita declined in South Asia and sub-Saharan Africa, even though the Human Development Index (HDI) showed an improvement everywhere and GDP per capita increased in all places (except in sub-Saharan Africa, where there was a slight decline). I conclude that, as none of the development indicators currently in use is able to reveal whether development has been, or is expected to be, sustainable, national statistical offices and international organizations should now routinely estimate the (comprehensive) wealth of nations.
http://rstb.royalsocietypublishing.org/content/365/1537/5.full