American researchers: ‘No longer link a country’s success with economic growth’ – World

Developed, liberal democracies have entered an unprecedented era of economic growth, which may end this century. Macroeconomic forecasts indicate slowing growth, Write researchers In the journal from the University of Colorado Boulder Natural human behavior.

Democracy and Prosperity

At the beginning of the 19th century, less than 1 percent of the world’s population lived in a democracy, and today 55 percent. Global prosperity has also increased exponentially since the Industrial Revolutions. The reason seems to be: on average, open, democratic institutions promote growth, and in the long run, growth and prosperity promote the formation of democratic institutions.

Modern liberal democracies – with great economic and political freedom and stability – have led the way, but may now face the future of a prolonged recession in economic growth.

The reasons are aging population, transition from goods to services, speed of innovation and government debt. Furthermore, the long-term effects of Govt-19 and climate change may further slow growth.

Some sustainability scientists see slow growth, stagnation or growth as an ecological need, especially in developed countries. But, the researchers write, the recession of growth will affect more than just the economy and ecology, and nations need to be prepared for it.

GDP

Historically, economic development has been an important achievement for advanced democracies such as the United States. So it was central to national identity, said Matt Burgess, assistant professor of environmental studies and economics at CU Boulder.

Economic growth is measured by gross domestic product (GDP), which the United States uses to prepare its federal budget. But in the United States, as growth slows, federal debt is now projected to be higher than GDP in the coming decades, meaning other ways to offset the budget deficit must be looked at.

“We need to move away from the notion that a growing economy is central to national identity, ready for a slower future,” says Burgess.

Civil renaissance

Burgess and his co-authors argue that the lack of growth poses challenges to social cohesion, inequality of opportunity, personal finances (retirement, savings), mental health and general confidence in government. “Whether slow growth is inevitable or planned, we argue that advanced democracies should be prepared for additional financial and social tensions, some of which are already apparent.”

To address these challenges, the authors suggest a combination of measures, which they call the “auxiliary civic renaissance”: one aimed at cutting off well-being from social capital and economic development.

The article points out several possible measures: strengthening democratic institutions and increasing social content; Reducing economic inequality and increasing social cohesion; Increasing returns on investment in public spending by closing tax loopholes, reducing corruption and raising taxes; Finally improving the non-economic aspects of people’s well-being.

Home Vouchers

One example that Burgess gives of promoting social cohesion and reducing inequality is the greater integration of communities than the division of income by size. “Instead of building houses at subsidized prices in a concentrated area, the government can provide vouchers to families so they can live where they want,” Burgess said. Only then can families integrate into the community. In practice, such a program has succeeded in reducing intergenerational poverty. ‘

The authors also say that slow growth should not be avoided. As economists have previously noted, the two main drivers of slowing growth – the aging population and the transition from goods to services – reflect improvements in well-being.

Developed, liberal democracies have entered an unprecedented era of economic growth, which may end this century. Macroeconomic forecasts indicate slower growth, researchers from Boulder University in Colorado write in the journal Nature Human Behavior. At the beginning of the 19th century, less than 1 percent of the world’s population lived in a democracy, and today 55 percent. Global prosperity has also increased exponentially since the Industrial Revolutions. The reason seems to be: on average, open, democratic institutions promote growth, and in the long run, growth and prosperity promote the formation of democratic institutions. Modern liberal democracies – with better economic and political freedom and stability – are now facing the future of a prolonged recession in economic growth. . Furthermore, the long-term effects of Govt-19 and climate change may further slow growth. Some sustainability scientists see slow growth, stagnation or growth as an ecological need, especially in developed countries. But, the researchers write, the recession of growth will affect more than just the economy and ecology, and nations need to be prepared for it. Historically, economic development has been an important achievement for advanced democracies such as the United States. It was therefore the center of national identity, said Matt Burgess, assistant professor of environmental studies and economics at CU Boulder. But in the United States, as growth slows, federal debt is now projected to be higher than GDP in the coming decades, meaning other avenues to offset the budget deficit must be considered. National identity ‘says Burgess. Burgess and his co-authors argue that the lack of growth poses challenges to social cohesion, inequality of opportunity, personal finances (retirement, savings), mental health and general confidence in government. Whether sluggish growth is inevitable or planned, we argue that advanced democracies should be prepared for additional financial and social tensions, some of which are already apparent. From economic growth. The article points out several possible measures: strengthening democratic institutions and increasing social content; Reducing economic inequality and increasing social cohesion; Increasing returns on investment in public spending by closing tax loopholes, reducing corruption and raising taxes; Finally, improving the non-economic aspects of people’s well-being. “Instead of building houses at subsidized prices in a concentrated area, the government can provide vouchers to families so they can live where they want,” Burgess said. Only then can families integrate into the community. In practice, such a program has been successful in reducing intergenerational poverty. ” The authors also say that slow growth should not be avoided. As economists have previously noted, the two main drivers of slowing growth – the aging population and the transition from goods to services – reflect improvements in well-being.