Gdp Quotes

I could end the deficit in 5 minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of congress are ineligible for reelection.

I could end the deficit in five minutes. You just pass a law that says that anytime there is a deficit of more than 3% of GDP all sitting members of congress are ineligible for reelection.

What it means to be human is to bring up your children in safety, educate them, keep them healthy, teach them how to care for themselves and others, allow them to develop in their own way among adults who are sane and responsibile, who know the value of the world and not its economic potential. It means art, it means time, it means all the invisibles never counted by the GDP and the census figures. It means knowing that life has an inside as well as an outside. And I think it means love.

I’m high maintenance.” “Just the way I like it.” “I have extremely expensive tastes.” “Good thing I come from old money and I’m rich enough to outshine a few countries’ GDP.

Besides being blind to lots of good things, the GDP also benefits from all manner of human suffering. Gridlock, drug abuse, adultery? Goldmines for gas stations, rehab centers, and divorce attorneys. If you were the GDP, your ideal citizen would be a compulsive gambler with cancer who’s going through a drawn-out divorce that he copes with by popping fistfuls of Prozac and going berserk on Black Friday. Environmental pollution even does double duty: One company makes a mint by cutting corners while another is paid to clean up the mess. By contrast, a centuries-old tree doesn’t count until you chop it down and sell it as lumber.

I don't have a problem with guilt about money. The way I see it is that my money represents an enormous number of claim checks on society. It's like I have these little pieces of paper that I can turn into consumption. If I wanted to, I could hire 10,000 people to do nothing but paint my picture every day for the rest of my life. And the GDP would go up. But the utility of the product would be zilch, and I would be keeping those 10,000 people from doing AIDS research, or teaching, or nursing. I don't do that though. I don't use very many of those claim checks. There's nothing material I want very much. And I'm going to give virtually all of those claim checks to charity when my wife and I die.

For over 70 years economics has been fixated on GDP, or national output, as its primary measure of progress. That fixation has been used to justify extreme inequalities of income and wealth coupled with unprecedented destruction of the living world. For the twenty-first century a far bigger goal is needed: meeting the human rights of every person within the means of our life-giving planet.

The United States invests just 2.4 percent of GDP in infrastructure; whereas, Europe invests twice that amount.

Life is more than a job; jobs are more than a paycheck; and a country is more than its wealth. Education is more than the acquisition of marketable skills, and you are more than your ability to contribute to your employer’s bottom line or the nation’s GDP, no matter what the rhetoric of politicians or executives would have you think. To ask what college is for is to ask what life is for, what society is for—what people are for. Do students ever hear this? What they hear is a constant drumbeat, in the public discourse, that seeks to march them in the opposite direction. When policy makers talk about higher education, from the president all the way down, they talk exclusively in terms of math and science. Journalists and pundits—some of whom were humanities majors and none of whom are nurses or engineers—never tire of lecturing the young about the necessity of thinking prudently when choosing a course of study, the naïveté of wanting to learn things just because you’re curious about them.

It’s not growth itself that matters – what matters is how income is distributed, and the extent to which it is invested in public services. And past a certain point, more GDP isn’t necessary for improving human welfare at all.

The United States of America was a pirate nation for the first one hundred years of its existence, ripping off the patents and trademarks of the imperial European powers it had liberated itself from by blood. By keeping their GDP at home, the U.S. revolutionaries were able to bootstrap their nation into an industrial powerhouse. Now, it seems, their descendants are bent on ensuring that no other country can pull the same trick off.

The GDP rises whenever money changes hands....The whole thing is reminiscent of Edward Abbey's reflection that "growth for the sake of growth is the philosophy of the cancer cell.

Europeans extracted an estimated 222,505,049 hours of forced labour from African slaves between 1619 and 1865. Valued at the US minimum wage, with a modest rate of interest, that’s worth $97 trillion – more than the entire global GDP.

The mining industry’s contribution to the GDP varies between 2.25 and 2.5 per cent.

thriving depends on more than meeting basic physical needs, and includes goods like a sense of community, mutual support, and equality. Wealth is much more than what GDP measures, and the market is not the only source of economic value. She urges policymakers to recognize the values of common lands, green space, biodiversity.

Creativity is key to productivity and prosperity.

The problem with gross domestic product is the gross bit. There are no deductions involved: all economic activity is accounted as if it were of positive value. Social harm is added to, not subtracted from, social good. A train crash which generates £1bn worth of track repairs, medical bills and funeral costs is deemed by this measure as beneficial as an uninterrupted service which generates £1bn in ticket sales.

It turns out from a number of more recent studies that reported happiness is strongly positively linked with the change or growth in GDP per capita from year to year.

On any given day, according to UPS, 2 percent of the world’s GDP can be found in UPS delivery trucks or package cars.

We pay to watch, read, or be in the presence of a flow experience. If quantified, you’d find it’s a major chunk of the GDP.

more than three-quarters of our GDP comes from service industries.

History has shown, of course, that a tenfold increase in global GDP per capita is possible without AI—it’s just that it took 190 years (from 1820 to 2010) to achieve that increase.

Unless we are able to bridge the gap between the rich and the poor, the GDP and other facts and figures would be merely decorative and of little significance.

shifting our focus from maximizing GDP to creating a labor market conducive to the dignity of work and social cohesion.

America of the 1920s had the same real per-capita GDP as Turkmenistan does today.

GDP growth is, ultimately, an indicator of the welfare of capitalism. That we have all come to see it as a proxy for the welfare of humans represents an extraordinary ideological coup

In the twentieth century per capita GDP was perhaps the supreme yardstick for evaluating national success. From this perspective, Singapore, each of whose citizens produces on average $56,000 worth of goods and services a year, is a more successful country than Costa Rica, whose citizens produce only $14,000 a year. But nowadays thinkers, politicians and even economists are calling to supplement or even replace GDP with GDH – gross domestic happiness. After all, what do people want? They don’t want to produce. They want to be happy. Production is important because it provides the material basis for happiness. But it is only the means, not the end. In one survey after another Costa Ricans report far higher levels of life satisfaction than Singaporeans. Would you rather be a highly productive but dissatisfied Singaporean, or a less productive but satisfied Costa Rican?

About half the global economy is living beyond not only its means but its diminished number of children's means. Instead of addressing that fact, countries with government debt of 125 percent of GDP are being "rescued" by countries with government debt of 80 percent of GDP. Good luck with that.

Just like how most if not all poor boys look up to and aspire to someday be rich men, most if not all underdeveloped and developing countries look up to and aspire to someday be developed countries.

If you were the GDP, your ideal citizen would be a compulsive gambler with cancer who’s going through a drawn-out divorce that he copes with by popping fistfuls of Prozac and going berserk on Black Friday.

The American Society of Civil Engineers estimates that the United States would have to spend $3.6 trillion more than currently budgeted just to bring our infrastructure up to acceptable levels by 2020.95 China and India are spending almost 10 percent of GDP on infrastructure; Europe, around 5 percent.96 Even Mexico spends just over 3 percent.97 The United States has not broken 3 percent once since the mid-1970s.98

By 2060, India’s economy is projected to be larger than China’s because of its greater population growth. India is forecast to produce about one-quarter of world GDP from 2040 through the rest of this century.

Under capital’s growth imperative, there is no horizon – no future point at which economists and politicians say we will have enough money or enough stuff. There is no end, in the double sense of the term: no maturity and no purpose. The unquestioned assumption is that growth can and should carry on for ever, for its own sake. It is astonishing, when you think about it, that the dominant belief in economics holds that no matter how rich a country has become, their GDP should keep rising, year after year, with no identifiable end point.

All told, in the colonial period, Europeans increased their share of global GDP from 20 to 60 per cent, Hickel points out. ‘Europe didn’t develop the colonies. The colonies developed Europe.’ The Scottish comedian Frankie Boyle sums it up: ‘We fear the arrival of immigrants that we have drawn here with the wealth we stole from them.

You could choose to live in either America or Denmark. In high-tax Denmark, your disposable income after taxes and transfers would be around $15,000 lower than in the States. But in return for your higher tax bill, you would get universal health care (one with better outcomes than in the US), free education right up through the best graduate schools, worker retraining programs on which the state spends seventeen times more as a percentage of GDP than what is spent in America, as well as high-quality infrastructure, mass transit, and many beautiful public parks and other spaces. Danes also enjoy some 550 more hours of leisure time a year than Americans do. If the choice were put this way—you can take the extra $15,000 but have to work longer hours, take fewer vacation days, and fend for yourself on health care, education, retraining, and transport—I think most Americans would choose the Danish model.

But Kuznets was careful to emphasise that GDP is flawed. It tallies up monetised economic activity, but it doesn’t care whether that activity is useful or destructive. If you cut down a forest for timber, GDP goes up. If you extend the working day and push back the retirement age, GDP goes up. If pollution causes hospital visits to rise, GDP goes up.

How much does it cost to treat leprosy? One $3 dose of antibiotic will cure a mild case; a $20 regimen of three antibiotics will cure a more severe case. The World Health Organization even provides the drugs free, but India‘s health care infrastructure is not good enough to identify the afflicted and get them the medicine they need. So, more than 100,000 people in India are horribly disfigured by a disease that costs $3 to cure. That is what it means to have a per capita GDP of $2,900.

To put it bluntly, it is not clear that cheering for innovation in the bombastic way we see in the blue states actually improves the economic well-being of average citizens. For example, the last fifteen years have been a golden age of financial and software innovation, but they have been feeble in terms of GDP growth. In ideological terms, however, innovation definitely works: as a way of excusing soaring inequality and explaining the exalted status of the rich, it's the best we've got.

When the volume of debt has grown as large as national income or GDP, and when it bears an interest rate (typically 5%) above the economy’s rate of growth (typically just 1% to 2%), then all the growth in national income is taken by the creditors.

In Singapore, as befits that no-nonsense city state, they followed this line of thinking even further, and pegged ministerial salaries to the national GDP. When the Singaporean economy grows, ministers get a raise, as if that is what their job is all about.

And why do we measure the progress of economies by gross domestic product? GDP is simply the total annual value of all goods and services transacted in a country. It rises not only when lives get better and economies progress but also when bad things happen to people or to the environment. Higher alcohol sales, more driving under the influence, more accidents, more emergency-room admissions, more injuries, more people in jail—GDP goes up. More illegal logging in the tropics, more deforestation and biodiversity loss, higher timber sales—again, GDP goes up. We know better, but we still worship high annual GDP growth rate, regardless of where it comes from.

Work done off the paid job is looked down upon if not ignored. autonomous activity threatens the employment level, generates deviance, and detracts​ from the GNP...Work no longer means the creation of a value perceived by the worker but mainly a job, which is a social relationship. Unemployment means sad idleness, rather than the freedom to do things that are useful for oneself or for one's neighbour. An active woman who runs a house and brings up children and takes in those of others is distinguished from a woman who 'works,' no matter how useless or damaging the product of this work might be.

China the Communist Party still pays lip service to traditional Marxist–Leninist ideals, but in practice it is guided by Deng Xiaoping’s famous maxims that ‘development is the only hard truth’ and that ‘it doesn’t matter if a cat is black or white, so long as it catches mice’. Which means, in plain language: do anything it takes to promote economic growth, even if Marx and Lenin wouldn’t have been happy with it. In Singapore, as befits that no-nonsense city state, they followed this line of thinking even further, and pegged ministerial salaries to the national GDP. When the Singaporean economy grows, ministers get a raise, as if that is what their job is all about

But a progressive policy needs more than just a bigger break with the economic and moral assumptions of the past 30 years. It needs a return to the conviction that economic growth and the affluence it brings is a means and not an end. The end is what it does to the lives, life-chances and hopes of people. Look at London. Of course it matters to all of us that London's economy flourishes. But the test of the enormous wealth generated in patches of the capital is not that it contributed 20%-30% to Britain's GDP but how it affects the lives of the millions who live and work there. What kind of lives are available to them? Can they afford to live there? If they can't, it is not compensation that London is also a paradise for the ultra-rich. Can they get decently paid jobs or jobs at all? If they can't, don't brag about all those Michelin-starred restaurants and their self-dramatising chefs. Or schooling for children? Inadequate schools are not offset by the fact that London universities could field a football team of Nobel prize winners.

Or take the value of Wikipedia. The creation of this is more or less akin to installing a Bodleian library in every house in Britain. Does this massive new wealth register on GDP figures? Not a blip. Or the new availability of blogs and podcasts. Tremendous writers who, just a decade ago, would have been lecturing to half-empty theatres are now read by hundreds of thousands. Again, almost no money changes hands, so not a wiggle in the GDP figures.

it also leaves out much of what is good: it doesn’t count non-monetised economic activities, even when they are essential to human life and well-being. If you grow your own food, clean your own house or care for your ageing parents, GDP says nothing. It only counts if you pay companies to do these things for you.

Another chestnut is that millionaires and billionaires are “job creators.” U.S. corporations have recently had their most profitable quarters in history; at the end of 2011, Apple was sitting on $97.6 billion in cash, more than the GDP of most small countries. So where are the jobs? Overwhelmingly, they went to China.4 Another

Gross compassion quotient (GCQ) of a country is the measure of the level of compassion of the country as whole.

According to one estimate, every cell phone adds $3,000 to the annual GDP of a developing country.

One ratio that Buffett is known to track is the total market cap to GDP. Recently, it was at 125%, which is a level approached in 1999 during the Internet bubble. Another

When you talk to the experts about developing new technology to provide clean drinking water for the developing world, they’ll tell you that—with four billion people making less than two dollars a day—there’s no viable business model, no economic model, and no way to finance development costs. But the twenty-five poorest countries already spend twenty percent of their GDP on water. This twenty percent, about thirty cents, ain’t much, but do the math again: four billion people spending thirty cents a day is a $1.2 billion market every day. It’s $400 billion a year. I can’t think of too many companies in the world that have $400 billion in sales a year. And you don’t have to do a market study to find out whether there’s a need. It’s water. There’s a need!

With declining state and local spending, total public spending on education, infrastructure, and basic research has dropped from 12 percent of GDP in the 1970s to less than 3 percent in 2011.

PricewaterhouseCoopers estimates AI deployment will add $15.7 trillion to global GDP by 2030. China is predicted to take home $7 trillion of that total, nearly double North America’s $3.7 trillion in gains. As

The idea that the GDP still serves as an accurate gauge of social welfare is one of the most widespread myths of our times. Even politicians who fight over everything else can always agree that the GDP must grow. Growth is good. It’s good for employment, it’s good for purchasing power, and it’s good for our government, giving it more to spend. Modern journalism would be all but lost without the GDP, wielding the latest national growth figures as a kind of government report card. A shrinking GDP spells recession and, if it really shrivels, depression. In fact, the GDP offers pretty much everything a journalist could want: hard figures, issued at regular intervals, and the chance to quote experts. Most importantly, the GDP offers a clear benchmark. Is the government doing its job? How do we as a country stack up? Has life gotten a little better? Never fear, we have the latest figures on the GDP, and they’ll tell us everything we need to know. Given our obsession with it, it’s hard to believe that just eighty years ago the GDP didn’t even exist.

And the irony is that the war purchases are recorded as a positive for economic growth and the GDP. Though the war spending is an economic negative and provides no improvement in the people’s standard of living, the government statisticians brag about an upward blip in the GDP. Besides, these bills are paid for by borrowing and printing money, thus increasing future debt obligations and causing higher prices for the next generation.

The rest of us, on the ·other hand-we members of the protected classes-have grown increasingly· dependent on our welfare programs. In 2020 the federal government spent more than $193 billion on homeowner subsidies, a figure that far exceeded the amount spent on direct housing assistance for low income families ($53 billion). Most families who enjoy those subsidies have six-figure incomes and are white. Poor families lucky enough to live in government-owned apartments of often have to deal with mold and even lead paint, while rich families are claiming the mortgage interest deduction on first and second homes. The lifetime limit for cash welfare to poor parents is five years, but families claiming the mortgage interest deduction may do so for the length of the mortgage, typically thirty years. A fifteen-story public housing tower and a mortgaged suburban home are both government subsidized, but only one looks (and feels) that way. If you count all public benefits offered by the federal government, America's welfare state (as a share of its gross domestic product) is the second biggest in the world, after France's. But that's true only if you include things like government-subsidized retirement benefits provided by employers, student loans and 529 college savings plans, child tax credits, and homeowner subsidies: benefits disproportionately flowing to Americans well above the poverty line. If you put aside these tax breaks and judge the United States solely by the share of its GDP allocated to programs directed at low-income citizens, then our investment in poverty reduction is much smaller than that of other rich nations. The American welfare state is lopsided.

Growth in median incomes during this period tracked nearly perfectly with per capita GDP. Three decades later, median household income had increased to about $61,000, an increase of just 22 percent. That growth, however, was driven largely by the entry of women into the workforce. If incomes had moved in lockstep with economic growth—as was the case prior to 1973—the median household would today be earning well in excess of $90,000, over 50 percent more than the $61,000 they do earn.

Consider this thought experiment: if Portugal has higher levels of human welfare than the United States with $38,000 less GDP per capita, then we can conclude that $38,000 of America’s per capita income is effectively ‘wasted’. That adds up to $13 trillion per year for the US economy as a whole. That’s $13 trillion worth of extraction and production and consumption each year, and $13 trillion worth of ecological pressure, that adds nothing, in and of itself, to the fundamentals of human welfare. It is damage without gain. This means that the US economy could in theory be scaled down by a staggering 65% from its present size while at the same time improving the lives of ordinary Americans, if income was distributed more fairly and invested in public goods.

of the 1 percent saw a bit less than a doubling of real incomes. Those in the 90th through 99th percentiles simply stayed even, with incomes growing at the same rate as per capita GDP, or gross domestic product. And the bottom 90 percent lost relative ground, with their incomes since 1980 growing more slowly than per capita GDP. The result is that the top 1 percent now owns twice as great a share of national wealth as the entire bottom 90 percent. We went from being a world leader in opportunity to being a laggard.

P. J. O’Rourke: “North Korea has a 99% literacy rate, a disciplined, hardworking society, and a $900 per capita GDP. Morocco has a 43.7% literacy rate, a society that spends all day drinking coffee and pestering tourists to buy rugs, and a $3,260 per capita GDP.”1

expected during the Long Boom years. In the year after the stimulus package was passed in 2009, for instance, GDP was growing fast enough to create about two million jobs according to Okun’s law.41 Instead, an additional 3.5 million jobs were lost during the period.

less than 1% of new businesses started each year in the U.S. receive venture funding, and total VC investment accounts for less than 0.2% of GDP. But the results of those investments disproportionately propel the entire economy. Venture-backed companies create 11% of all private sector jobs. They generate annual revenues equivalent to an astounding 21% of GDP. Indeed, the dozen largest tech companies were all venture-backed. Together those 12 companies are worth more than $2 trillion, more than all other tech companies combined.

The Indian countryside has transformed into this wasteland of near-terminal despair and increasingly impossible survival, by new technologies, forced integration with globalized markets, and an uncaring state. For a sector which employs half the population, contributes a sixth of the GDP, the state allocates as little as a twentieth of total public investment. It is no wonder, then, that tens of thousands of farmers each year poison or hang themselves; and millions of the young flee, when they can, to wherever they can, while they still can. Unequal

One problem with most current governments is that they prioritize economic growth (as mismeasured by GDP per capita) over citizens’ happiness, quality of life, efficiency of trait display, and breadth and depth of social networks. The latter outcomes are not actually any harder to measure than GDP per capita. For example, the UN Human Development Index (HDI) measures overall quality of life fairly well by taking into account life expectancy, literacy, and educational attainment; this index puts Iceland, Norway, Australia, and Canada at the top, and the Democratic Republic of the Congo at the bottom.

Today, nearly every government in the world, rich and poor alike, is focused single-mindedly on GDP growth. This is no longer a matter of choice. In a globalised world where capital can move freely across borders at the click of a mouse, nations are forced to compete with one another to attract foreign investment. Governments find themselves under pressure to cut workers’ rights, slash environmental protections, open up public land to developers, privatise public services – whatever it takes to please the barons of international capital in what has become a global rush towards self-imposed structural adjustment. All of this is done in the name of growth.

If you count all benefits, America’s welfare state (as a share of its gross domestic product) is the second biggest in the world, after France’s. But that’s true only if you include things like government-subsidized retirement benefits provided by employers, student loans and 529 college savings plans, child tax credits, and homeowner subsidies: benefits disproportionately flowing to Americans well above the poverty line. If you put aside these tax breaks and judge the United States solely by the share of its GDP allocated to programs directed at low-income citizens, then our investment in poverty reduction is much smaller than that of other rich nations. The American welfare state is lopsided.[22]

Even in recent times, the empirical evidence does not support the claim that trade liberalization or incentive neutrality leads to faster growth. It is true that higher manufacturing growth rates have been typically associated with higher export growth rates (mostly in countries where export and import shares to GDP grew), but there is no statistical relation between either of these growth rates or degree of trade restrictions. Rather, almost all of successful export-oriented growth has come with selective trade and industrialization policies. In this regard, stable exchange rates and national price levels seem to be considerably more important than import policy in producing successful export-oriented growth

general trend is toward products that use fewer atoms. We might not notice this because, while individual items use less material, we use more items as the economy expands and we thus accumulate more stuff in total. However, the total amount of material we use per GDP dollar is going down, which means we use less material for greater value. The ratio of mass needed to generate a unit of GDP has been falling for 150 years, declining even faster in the last two decades. In 1870 it took 4 kilograms of stuff to generate one unit of the U.S.’s GDP. In 1930 it took only one kilogram. Recently the value of GDP per kilogram of inputs rose from $1.64 in 1977 to $3.58 in 2000—a doubling of dematerialization in 23 years.

1970 the typical inhabitant was no better off than his or her counterpart in the year 1000, according to Maddison’s figures.

(1) reward is not contentment, and pleasure is not happiness; (2) reward is dopamine, and contentment is serotonin; (3) chronic excess reward interferes with contentment; (4) business has conflated pleasure with happiness consciously and with clear-cut intent, specifically to get you to buy its junk or engage in hedonic behaviors favorable to industry; (5) government has passed legislation to make it easier to buy that junk or make easier access to engage in those behaviors to drive profit and GDP, and the Supreme Court has justified and supported these practices; and (6) buying that junk or engaging in those behaviors long-term and without thought can leave you and society fat, sick, stupid, broke, addicted, depressed, and most decidedly unhappy.

Economists had found an almost one-to-one match between PISA scores and a nation's long-term economic growth. Many other things influenced economic growth, of course, but the ability of a workforce to learn, think, and adapt was the ultimate stimulus package. If the United States had Finland's PISA scores, GDP would be increasing at the rate of one to two trillion dollars per year.

As far as agricultural GDP is concerned, in today’s China additional investment in high-quality roads no longer has a statistically significant impact while low-quality roads are not only significant but also generate 1.57 yuan of agricultural GDP for every yuan invested. Investment in low-quality roads also generates high returns in rural nonfarm GDP. Every yuan invested in low-quality roads yields more than 5 yuan of rural nonfarm GDP. Low-quality roads also raise more poor people out of poverty per yuan invested than high-quality roads, making them a win–win strategy for growth in agriculture and poverty alleviation. In Africa, governments can learn from the Chinese experience and make sure their road programs give adequate priority to lower-quality and rural feeder roads.

On 10 September 2008, Raghuram Rajan, noted economist and honorary advisor to Prime Minister Manmohan Singh, delivered a speech at the Bombay Chamber of Commerce where he spoke about how most of India's billionaires did not derive their wealth from IT or software but from land, natural resources, and government contracts or licences. He spoke of India being second only to Russia in terms of wealth concentration (the number of billionaires per trillion dollars of GDP). To show how extraordinary this number was he quoted the case of Brazil which had only 18 billionaires despite a greater GDP than India. Or Germany, which had three times India's GDP and a per capita income 40 times India's but had the same number of billionaires. 'If Russia is an oligarchy, how long can we resist calling India one?' he wondered.

David Davis had promised that Britain would be part of a free-trade area ‘almost twice the size of the EU’ within two years of the Brexit vote – a statement outdone in its absurdity only by Mr Davis’ later boast of negotiating a trading area ‘probably ten times the size of the European Union’. Based on GDP, Davis is aiming for something larger than the economies of the entire planet combined.68 So it can’t happen.

This complicated picture means that each of our paths to reshaping the world must pass directly through violence against women. Whether our passion is to improve healthcare access, end school-to-prison pipelines, increase the GDP, build an immigration system that respects the dignity of human beings, or create pathways to justice - all of that work requires ending and responding effectively to violence against women.

Humanity has been taking off like a rocket since the 1700s, but we have not achieved a stable orbit in the heavens. And even if we did, no orbit is stable in the long run. Eventually gravity claims what is hers.

Grotesquely, there are cheerleaders for the king of Bhutan because of his claim that he seeks to increase gross national happiness, when Bhutan is one of the poorest and one of the more authoritarian countries in the world.

Despite increasing access to psychotherapy, despite increasing numbers of prescriptions for SSRIs at decreasing cost per pill, depression is still expected to be the single biggest cause of disability in the world by 2030. It is not cancer, or heart disease, or rheumatoid arthritis, or TB, or any other physical disease, that accounts for economic costs in the order of 3% of GDP in rich countries. It is mental health disorders, principally depression.

The gross domestic product (GDP) was created in the 1930s to measure the value of the sum total of economic goods and services generated over a single year. The problem with the index is that it counts negative as well as positive economic activity. If a country invests large sums of money in armaments, builds prisons, expands police security, and has to clean up polluted environments and the like, it’s included in the GDP. Simon Kuznets, an American who invented the GDP measurement tool, pointed out early on that “[t]he welfare of a nation can . . . scarcely be inferred from a measurement of national income.”28 Later in life, Kuznets became even more emphatic about the drawbacks of relying on the GDP as a gauge of economic prosperity. He warned that “[d]istinctions must be kept in mind between quantity and quality of growth . . . . Goals for ‘more’ growth should specify more growth of what and for what.”29

The shift in national power may be overshadowed by an even more fundamental shift in the nature of power. Enabled by communications technologies, power will shift toward multifaceted and amorphous networks that will form to influence state and global actions. Those countries with some of the strongest fundamentals—GDP, population size, etc.—will not be able to punch their weight unless they also learn to operate in networks and coalitions in a multipolar world.

Noting that material poverty in the US was matched by an even greater “poverty of satisfaction, purpose, and dignity,” Kennedy decried GDP as a poor measure of the state of the nation. “Too much and for too long, we seemed to have surrendered personal excellence and community values in the mere accumulation of material things,” he said. The GDP was buoyed, he noted, by cigarette advertising, ambulances, home security, jails, the destruction of redwood forests, urban sprawl, napalm, nuclear warheads and the armoured vehicles used by police against riots in American cities. “It does not include the beauty of our poetry or the strength of our marriages, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning, neither our compassion nor our devotion to our country. It measures everything, in short, except that which makes life worthwhile,” Kennedy said.

The great irony, then, is that the nation’s most famous modern conservative economist became the father of Big Government, chronic deficits, and national fiscal bankruptcy. It was Friedman who first urged the removal of the Bretton Woods gold standard restraints on central bank money printing, and then added insult to injury by giving conservative sanction to perpetual open market purchases of government debt by the Fed. Friedman’s monetarism thereby institutionalized a régime which allowed politicians to chronically spend without taxing. Likewise, it was the free market professor of the Chicago school who also blessed the fundamental Keynesian proposition that Washington must continuously manage and stimulate the national economy. To be sure, Friedman’s “freshwater” proposition, in Paul Krugman’s famous paradigm, was far more modest than the vast “fine-tuning” pretensions of his “salt-water” rivals. The saltwater Keynesians of the 1960s proposed to stimulate the economy until the last billion dollars of potential GDP was realized; that is, they would achieve prosperity by causing the state to do anything that was needed through a multiplicity of fiscal interventions. By contrast, the freshwater Keynesian, Milton Friedman, thought that capitalism could take care of itself as long as it had precisely the right quantity of money at all times; that is, Friedman would attain prosperity by causing the state to do the one thing that was needed through the single spigot of M1 growth.

At a private lunch when I recently asked one of the world’s highest-ranking international diplomats what, among all the possible scenarios for Pakistan, was the most positive vision she held, everyone around the table laughed nervously. This diplomat was surprisingly honest. She admitted that she had not one positive vision for Pakistan. She was candid about a view that leaders widely hold but seldom acknowledge: humanity is on a slippery slope of resource depletion. It is unlikely leaders can do anything about it. Hence, their job is to make sure their people will lose last. This means securing for their people enough resources from the globe’s diminishing resource pie to ensure that their nation will float even if others sink. From this vantage point, money shields a population from losing first. Leaders beholden to this view therefore embrace even more vigorously GDP growth as their key objective; the financial advantage will allow their constituency to stay just a bit further ahead of the others in the resource race to 2052.

In the twentieth century per capita GDP was perhaps the supreme yardstick for evaluating national success. From this perspective, Singapore, each of whose citizens produces on average $56,000 worth of goods and services a year, is a more successful country than Costa Rica, whose citizens produce only $14,000 a year. But nowadays thinkers, politicians and even economists are calling to supplement or even replace GDP with GDH – gross domestic happiness. After all, what do people want? They don’t want to produce. They want to be happy.

SUSAN’S STORY OF cascading loss and downward mobility has been replicated millions of times across the American landscape due to the financial industry’s actions in the 2000s. While the country’s GDP and employment numbers rebounded before the pandemic struck another blow, the damage at the household level has been permanent. Of families who lost their houses through dire events such as job loss or foreclosure, over two-thirds will probably never own a home again. Because of our globally interconnected economy, the Great Recession altered lives in every country in the world. And all of it was preventable, if only we had paid attention earlier to the financial fires burning through Black and brown communities across the nation. Instead, the predatory practices were allowed to continue until the disaster had engulfed white communities, too—and only then, far too late, was it recognized as an emergency. There is no question that the financial crisis hurt people of color first and worst. And yet the majority of the people it damaged were white. This is the dynamic we’ve seen over and over again throughout our country’s history,

Brain-like in function and speed, the internet connected over one-third of the global population. Three million searches every minute; one-hundred-trillion emails every year; more Facebook users than people in North America, all with with personal photos, videos, apps, and chats. There were dozens of dating sites, an immersive universe called 2nd Life that boasted a country-sized GDP, a slew of viruses, obnoxious advertising, more than a billion photos of naked women, and seventy-two hours of video uploaded to YouTube every minute. This was the environment where the friendship flourished.

The best available apples-to-apples comparison of inflation-adjusted earnings shows what the typical fully employed man earned back in the 1970s and what that same fully employed man earns today. The picture isn’t pretty. As the GDP has doubled and almost doubled again, as corporations have piled up record profits, as the country has gotten wealthier, and as the number of billionaires has exploded, the average man working full-time today earns about what the average man earned back in 1970. Nearly half a century has gone by, and the guy right in the middle of the pack is making about what his granddad did. The second punch that’s landed on families is expenses. If costs had stayed the same over the past few decades, families would be okay—or, at least, they would be in about the same position as they were thirty-five years ago. Not advancing but not falling behind, either. But that didn’t happen. Total costs are up, way up. True, families have cut back on some kinds of expenses. Today, the average family spends less on food (including eating out), less on clothing, less on appliances, and less on furniture than a comparable family did back in 1971. In other words, families have been pretty careful about their day-to-day spending, but it hasn’t saved them. The problem is that the other expenses—the big, fixed expenses—have shot through the roof and blown apart the family budget. Adjusted for inflation, families today spend more on transportation, more on housing, and more on health insurance. And for all those families with small children and no one at home during the day, the cost of childcare has doubled, doubled again, and doubled once more. Families have pinched pennies on groceries and clothing, but these big, recurring expenses have blown them right over a financial cliff.

Two decades after its first democratic election, South Africa ranks as the most unequal country on Earth.1 A host of policy tools could patch each of South Africa’s ills in piecemeal fashion, yet one force would unquestionably improve them all: economic growth.2 Diminished growth lowers living standards. With 5 percent annual growth, it takes just fourteen years to double a country’s GDP; with 3 percent growth, it takes twenty-four years. In general, emerging economies with a low asset base need to grow faster and accumulate a stock of assets more quickly than more developed economies in which basic living standards are already largely met. Meaningfully increasing per capita income is a critical way to lift people’s living standards and take them out of poverty, thereby truly changing the developmental trajectory of the country. South Africa has managed to push growth above a mere 3 percent only four times since the transition from apartheid, and it has remained all but stalled under 5 percent since 2008. And the forecast for growth in years to come hovers around a paltry 1 percent. Because South Africa’s population has been growing around 1.5 percent per year since 2008, the country’s per capita income has been stagnant over the period.

It was during the 1970s that statisticians decided it would be a good idea to measure banks’ “productivity” in terms of their risk-taking behavior. The more risk, the bigger their slice of the GDP.14 Hardly any wonder, then, that banks have continually upped their lending, egged on by politicians who have been convinced that the financial sector’s slice is every bit as valuable as the whole manufacturing industry. “If banking had been subtracted from the GDP, rather than added to it,” the Financial Times recently reported, “it is plausible to speculate that the financial crisis would never have happened.”15 The CEO who recklessly hawks mortgages and derivatives to lap up millions in bonuses currently contributes more to the GDP than a school packed with teachers or a factory full of car mechanics. We live in a world where the going rule seems to be that the more vital your occupation (cleaning, nursing, teaching), the lower you rate in the GDP. As the Nobel laureate James Tobin said back in 1984, “We are throwing more and more of our resources, including the cream of our youth, into financial activities remote from the production of goods and services, into activities that generate high private rewards disproportionate to their social productivity.”16

Countries measured their success by the size of their territory, the increase in their population and the growth of their GDP – not by the happiness of their citizens. Industrialised nations such as Germany, France and Japan established gigantic systems of education, health and welfare, yet these systems were aimed to strengthen the nation rather than ensure individual well-being. Schools were founded to produce skilful and obedient citizens who would serve the nation loyally. At eighteen, youths needed to be not only patriotic but also literate, so that they could read the brigadier’s order of the day and draw up tomorrow’s battle plans. They had to know mathematics in order to calculate the shell’s trajectory or crack the enemy’s secret code. They needed a reasonable command of electrics, mechanics and medicine in order to operate wireless sets, drive tanks and take care of wounded comrades. When they left the army they were expected to serve the nation as clerks, teachers and engineers, building a modern economy and paying lots of taxes. The same went for the health system. At the end of the nineteenth century countries such as France, Germany and Japan began providing free health care for the masses. They financed vaccinations for infants, balanced diets for children and physical education for teenagers. They drained festering swamps, exterminated mosquitoes and built centralised sewage systems. The aim wasn’t to make people happy, but to make the nation stronger. The country needed sturdy soldiers and workers, healthy women who would give birth to more soldiers and workers, and bureaucrats who came to the office punctually at 8 a.m. instead of lying sick at home. Even the welfare system was originally planned in the interest of the nation rather than of needy individuals. When Otto von Bismarck pioneered state pensions and social security in late nineteenth-century Germany, his chief aim was to ensure the loyalty of the citizens rather than to increase their well-being. You fought for your country when you were eighteen, and paid your taxes when you were forty, because you counted on the state to take care of you when you were seventy.30 In 1776 the Founding Fathers of the United States established the right to the pursuit of happiness as one of three unalienable human rights, alongside the right to life and the right to liberty. It’s important to note, however, that the American Declaration of Independence guaranteed the right to the pursuit of happiness, not the right to happiness itself. Crucially, Thomas Jefferson did not make the state responsible for its citizens’ happiness. Rather, he sought only to limit the power of the state.

When planners fail to account for gender, public spaces become male spaces by default. The reality is that half the global population has a female body. Half the global population has to deal on a daily basis with the sexualised menace that is visited on that body. The entire global population needs the care that, currently, is mainly carried out, unpaid, by women. These are not niche concerns, and if public spaces are truly to for everyone, we have to start accounting for the lives of the other half of the world. And, as we've seen, this isn't just a matter of justice: it's also a matter of simple economics. By accounting for women's care responsibilities in urban planning, we make it easier for women to engage fully in the paid workforce - and as we will see in the next chapter, this is a significant driver of GDP. By accounting for the sexual violence women face and introducing preventative measures - like providing enough single-sex public toilets we save money in the long run by reducing the significant economic cost of violence against women. When we account for female socialisation in the design of our open spaces and public activities, we again save money in the long run by ensuring women's long-term mental and physical health. - In short, designing the female half of the world out of our public spaces is not a matter of resources. It's a matter of priorities, and, currently, whether unthinkingly or not, we just aren't prioritising women. This is manifestly unjust, and economically illiterate. Women have an equal right to public resources: we must stop excluding them by design

In the first fifteen chapters of this book, I hope I have made a cogent case that: (1) reward is not contentment, and pleasure is not happiness; (2) reward is dopamine, and contentment is serotonin; (3) chronic excess reward interferes with contentment; (4) business has conflated pleasure with happiness consciously and with clear-cut intent, specifically to get you to buy its junk or engage in hedonic behaviors favorable to industry; (5) government has passed legislation to make it easier to buy that junk or make easier access to engage in those behaviors to drive profit and GDP, and the Supreme Court has justified and supported these practices; and (6) buying that junk or engaging in those behaviors long-term and without thought can leave you and society fat, sick, stupid, broke, addicted, depressed, and most decidedly unhappy.

The same thing, notes Brynjolfsson, happened 120 years ago, in the Second Industrial Revolution, when electrification—the supernova of its day—was introduced. Old factories did not just have to be electrified to achieve the productivity boosts; they had to be redesigned, along with all business processes. It took thirty years for one generation of managers and workers to retire and for a new generation to emerge to get the full productivity benefits of that new power source. A December 2015 study by the McKinsey Global Institute on American industry found a “considerable gap between the most digitized sectors and the rest of the economy over time and [found] that despite a massive rush of adoption, most sectors have barely closed that gap over the past decade … Because the less digitized sectors are some of the largest in terms of GDP contribution and employment, we [found] that the US economy as a whole is only reaching 18 percent of its digital potential … The United States will need to adapt its institutions and training pathways to help workers acquire relevant skills and navigate this period of transition and churn.” The supernova is a new power source, and it will take some time for society to reconfigure itself to absorb its full potential. As that happens, I believe that Brynjolfsson will be proved right and we will start to see the benefits—a broad range of new discoveries around health, learning, urban planning, transportation, innovation, and commerce—that will drive growth. That debate is for economists, though, and beyond the scope of this book, but I will be eager to see how it plays out. What is absolutely clear right now is that while the supernova may not have made our economies measurably more productive yet, it is clearly making all forms of technology, and therefore individuals, companies, ideas, machines, and groups, more powerful—more able to shape the world around them in unprecedented ways with less effort than ever before. If you want to be a maker, a starter-upper, an inventor, or an innovator, this is your time. By leveraging the supernova you can do so much more now with so little. As Tom Goodwin, senior vice president of strategy and innovation at Havas Media, observed in a March 3, 2015, essay on TechCrunch.com: “Uber, the world’s largest taxi company, owns no vehicles. Facebook, the world’s most popular media owner, creates no content. Alibaba, the most valuable retailer, has no inventory. And Airbnb, the world’s largest accommodation provider, owns no real estate. Something interesting is happening.

Today Hindu revivalists, pious Muslims, Japanese nationalists and Chinese communists may declare their adherence to very different values and goals, but they have all come to believe that economic growth is the key to realising their disparate goals. Thus in 2014 the devout Hindu Narendra Modi was elected prime minister of India thanks largely to his success in boosting economic growth in his home state of Gujarat, and to the widely held view that only he could reinvigorate the sluggish national economy. Analogous views have kept the Islamist Recep Tayyip Erdoğan in power in Turkey since 2003. The name of his party – the Justice and Development Party – highlights its commitment to economic development, and the Erdoğan government has indeed managed to maintain impressive growth rates for more than a decade. Japan’s prime minister, the nationalist Shinzō Abe, came to office in 2012 pledging to jolt the Japanese economy out of two decades of stagnation. His aggressive and somewhat unusual measures to achieve this have been nicknamed Abenomics. Meanwhile in neighbouring China the Communist Party still pays lip service to traditional Marxist–Leninist ideals, but in practice is guided by Deng Xiaoping’s famous maxims that ‘development is the only hard truth’ and that ‘it doesn’t matter if a cat is black or white, so long as it catches mice’. Which means, in plain language: do whatever it takes to promote economic growth, even if Marx and Lenin wouldn’t have been happy with it. In Singapore, as befits that no-nonsense city-state, they pursue this line of thinking even further, and peg ministerial salaries to the national GDP. When the Singaporean economy grows, government ministers get a raise, as if that is what their jobs are all about.2

Though it’s easy to sneer at national income as a shallow and materialistic measure, it correlates with every indicator of human flourishing, as we will repeatedly see in the chapters to come. Most obviously, GDP per capita correlates with longevity, health, and nutrition.57 Less obviously, it correlates with higher ethical values like peace, freedom, human rights, and tolerance.58 Richer countries, on average, fight fewer wars with each other (chapter 11), are less likely to be riven by civil wars (chapter 11), are more likely to become and stay democratic (chapter 14), and have greater respect for human rights (chapter 14—on average, that is; Arab oil states are rich but repressive). The citizens of richer countries have greater respect for “emancipative” or liberal values such as women’s equality, free speech, gay rights, participatory democracy, and protection of the environment (chapters 10 and 15). Not surprisingly, as countries get richer they get happier (chapter 18); more

It is challenging to honor the descent in a culture that primary values the ascent. We like things rising—stock markets, the GDP, profit margins. We get anxious when things go down. Even within psychology, there is a premise that is biased toward improvement, always getting better, rising above our troubles. We hold dear concepts like progress and integration. These are fine in and of themselves, but it is not the way psyche works. Psyche, we must remember, was shaped by and is rooted in the foundations of nature. As such, psyche also experiences times of decay and death, of stopping, regression, and being still. Much happens in these times that deepen the soul. When all we are shown is the imagery of ascent, we are left to interpret the times of descent as pathological; we feel that we are somehow failing. As poet and author Robert Bly wryly noted, “How can we get a look at the cinders side of things when the society is determined to create a world of shopping malls and entertainment complexes in which we are made to believe that there is no death, disfigurement, illness, insanity, lethargy, or misery? Disneyland means ‘no ashes.’ 

In North America, there is no nostalgia for the postwar period, quite simply because the Trente Glorieuses never existed there: per capita output grew at roughly the same rate of 1.5–2 percent per year throughout the period 1820–2012. To be sure, growth slowed a bit between 1930 and 1950 to just over 1.5 percent, then increased again to just over 2 percent between 1950 and 1970, and then slowed to less than 1.5 percent between 1990 and 2012. In Western Europe, which suffered much more from the two world wars, the variations are considerably greater: per capita output stagnated between 1913 and 1950 (with a growth rate of just over 0.5 percent) and then leapt ahead to more than 4 percent from 1950 to 1970, before falling sharply to just slightly above US levels (a little more than 2 percent) in the period 1970–1990 and to barely 1.5 percent between 1990 and 2012. Western Europe experienced a golden age of growth between 1950 and 1970, only to see its growth rate diminish to one-half or even one-third of its peak level during the decades that followed. [...] If we looked only at continental Europe, we would find an average per capita output growth rate of 5 percent between 1950 and 1970—a level well beyond that achieved in other advanced countries over the past two centuries. These very different collective experiences of growth in the twentieth century largely explain why public opinion in different countries varies so widely in regard to commercial and financial globalization and indeed to capitalism in general. In continental Europe and especially France, people quite naturally continue to look on the first three postwar decades—a period of strong state intervention in the economy—as a period blessed with rapid growth, and many regard the liberalization of the economy that began around 1980 as the cause of a slowdown. In Great Britain and the United States, postwar history is interpreted quite differently. Between 1950 and 1980, the gap between the English-speaking countries and the countries that had lost the war closed rapidly. By the late 1970s, US magazine covers often denounced the decline of the United States and the success of German and Japanese industry. In Britain, GDP per capita fell below the level of Germany, France, Japan, and even Italy. It may even be the case that this sense of being rivaled (or even overtaken in the case of Britain) played an important part in the “conservative revolution.” Margaret Thatcher in Britain and Ronald Reagan in the United States promised to “roll back the welfare state” that had allegedly sapped the animal spirits of Anglo-Saxon entrepreneurs and thus to return to pure nineteenth-century capitalism, which would allow the United States and Britain to regain the upper hand. Even today, many people in both countries believe that the conservative revolution was remarkably successful, because their growth rates once again matched continental European and Japanese levels. In fact, neither the economic liberalization that began around 1980 nor the state interventionism that began in 1945 deserves such praise or blame. France, Germany, and Japan would very likely have caught up with Britain and the United States following their collapse of 1914–1945 regardless of what policies they had adopted (I say this with only slight exaggeration). The most one can say is that state intervention did no harm. Similarly, once these countries had attained the global technological frontier, it is hardly surprising that they ceased to grow more rapidly than Britain and the United States or that growth rates in all of these wealthy countries more or less equalized [...] Broadly speaking, the US and British policies of economic liberalization appear to have had little effect on this simple reality, since they neither increased growth nor decreased it.

Most countries that make great economic and social progress are not democracies. South Korea moved from Level 1 to Level 3 faster than any country had ever done (without finding oil), all the time as a military dictatorship. Of the ten countries with the fastest economic growth in 2016, nine of them score low on democracy. Anyone who claims that democracy is a necessity for economic growth and health improvements will risk getting contradicted by reality. It’s better to argue for democracy as a goal in itself instead of as a superior means to other goals we like. There is no single measure—not GDP per capita, not child mortality (as in Cuba), not individual freedom (as in the United States), not even democracy—whose improvement will guarantee improvements in all the others. There is no single indicator through which we can measure the progress of a nation. Reality is just more complicated than that. The world cannot be understood without numbers, nor through numbers alone. A country cannot function without a government, but the government cannot solve every problem. Neither the public sector nor the private sector is always the answer. No single measure of a good society can drive every other aspect of its development. It’s not either/or. It’s both and it’s case-by-case. Factfulness Factfulness is … recognizing that a single perspective can limit your imagination, and remembering that it is better to look at problems from many angles to get a more accurate understanding and find practical solutions. To control the single perspective instinct, get a toolbox, not a hammer.

Economics today creates appetites instead of solutions. The western world swells with obesity while others starve. The rich wander about like gods in their own nightmares. Or go skiing in the desert. You don’t even have to be particularly rich to do that. Those who once were starving now have access to chips, Coca-Cola, trans fats and refined sugars, but they are still disenfranchized. It is said that when Mahatma Gandhi was asked what he thought about western civilization, he answered that yes, it would be a good idea. The bank man’s bonuses and the oligarch’s billions are natural phenomena. Someone has to pull away from the masses – or else we’ll all become poorer. After the crash Icelandic banks lost 100 billion dollars. The country’s GDP had only ever amounted to thirteen billion dollars in total. An island with chronic inflation, a small currency and no natural resources to speak of: fish and warm water. Its economy was a third of Luxembourg’s. Well, they should be grateful they were allowed to take part in the financial party. Just like ugly girls should be grateful. Enjoy, swallow and don’t complain when it’s over. Economists can pull the same explanations from their hats every time. Dream worlds of total social exclusion and endless consumerism grow where they can be left in peace, at a safe distance from the poverty and environmental destruction they spread around themselves. Alternative universes for privileged human life forms. The stock market rises and the stock market falls. Countries devalue and currencies ripple. The market’s movements are monitored minute by minute. Some people always walk in threadbare shoes. And you arrange your preferences to avoid meeting them. It’s no longer possible to see further into the future than one desire at a time. History has ended and individual freedom has taken over. There is no alternative.

Almost all official statistics and policy documents on wages, income, gross domestic product (GDP), crime, unemployment rates, innovation rates, cost of living indices, morbidity and mortality rates, and poverty rates are compiled by governmental agencies and international bodies worldwide in terms of both total aggregate and per capita metrics. Furthermore, well-known composite indices of urban performance and the quality of life, such as those assembled by the World Economic Forum and magazines like Fortune, Forbes, and The Economist, primarily rely on naive linear combinations of such measures.6 Because we have quantitative scaling curves for many of these urban characteristics and a theoretical framework for their underlying dynamics we can do much better in devising a scientific basis for assessing performance and ranking cities. The ubiquitous use of per capita indicators for ranking and comparing cities is particularly egregious because it implicitly assumes that the baseline, or null hypothesis, for any urban characteristic is that it scales linearly with population size. In other words, it presumes that an idealized city is just the linear sum of the activities of all of its citizens, thereby ignoring its most essential feature and the very point of its existence, namely, that it is a collective emergent agglomeration resulting from nonlinear social and organizational interactions. Cities are quintessentially complex adaptive systems and, as such, are significantly more than just the simple linear sum of their individual components and constituents, whether buildings, roads, people, or money. This is expressed by the superlinear scaling laws whose exponents are 1.15 rather than 1.00. This approximately 15 percent increase in all socioeconomic activity with every doubling of the population size happens almost independently of administrators, politicians, planners, history, geographical location, and culture.