The Synergy of the Good Economy

Reposted from JohnBrianShannon.com

An economy that constantly grows and improves because it has enough virtuous circles (and cycles) is by design, a good economy.

It’s what every economy wants to be when it grows-up.

However, there are no generally accepted metrics to measure what constitutes a good economy — but a definition by Edmund S. Phelps in his recent Project Syndicate essay is a definition that one can appreciate.

It is worth noting that the UN Happiness Index could be a way to grade the successful march towards a ‘Good’ or ‘Virtuous’ economy, as nations that rank highly on the UN Index also tend to have high productivity, high per capita income, low unemployment, a high degree of personal rights and freedoms, low crime rates (and related to that stat) generally high levels of education, and in other ways their citizens live fulfilling lives in a stable environment.

It’s easy to ‘work it back’ from the end-user point-of-view.

Another way to grade the march toward a Good Economy would be the Social Progress Imperative’s SPI Index.

If nations are ranking highly on SPI heuristics, it’s obvious that everything needed to support those high grades are *already in place* and working. Ergo, a high-scoring SPI nation is one with a Good Economy.

Social Progress Index 2015
The Good Economy as demonstrated in the Social Progress Index 2015

Perhaps nations (and economists!) should put more emphasis on UN Happiness Index and SPI heuristics and less emphasis on GDP growth.

After all, You Can’t Feed a Family with GDP

The 1%’ers will always rate their country highly on the UN Happiness Index and on the SPI Index, as their incomes and security are guaranteed and their income growth meets or exceeds GDP growth. What matters in this case, is what 99% of the population thinks.

In developed countries, GDP growth has largely plateaued, and even in the United States of America the largest economy on the planet and the country with the strongest military, GDP growth is anemic at 2% annually.

There just isn’t room to grow the U.S. (and other) developed economies more than 2% per year under the existing paradigm.

“If you keep on doing what you’ve been doing, you’re going to keep on getting what you’ve been getting.” — Jackie B. Cooper

Einstein said something similar — “The definition of insanity is doing the same thing over and over again, but expecting different results.”

Therefore, to try to get more growth out of the U.S. economy by ‘doubling-down’ on everything that we’re already doing, does nothing except prove the truth of such quotes.

But what the U.S. hasn’t tried (enough) is to use heuristical analyses to plot a policy path towards high UN Happiness Index and high SPI scores. By doing so, I posit that the U.S. could unlock another 2% of GDP growth annually.

If that’s true for the U.S. economy, it works double for China’s economy.

Did anyone else notice the productivity increases in China during, and for a short time after, the Beijing Olympics?

Yes, a mini economic boom occurred as a result of hosting the Olympics — just as it does in any country that hosts the Olympics. But productivity isn’t known to spike upwards when a country hosts the Olympics.

I guess after not seeing the sky for decades due to a permanent and thick blanket of industrial smog, Beijing residents finally got to see the sky — due to some very foresighted Chinese air pollution abatement policies that were implemented for the duration of the Olympics.

“Look everyone, The Sky!”

The Good Economy gave much-needed respite to Beijing residents during the 2008 Olympics by lowering smog levels which improved their quality of life, consequently and unexpectedly, worker productivity improved. Image by scmp
The Good Economy gave much-needed respite to Beijing residents during the 2008 Olympics by lowering smog levels which improved their quality of life, consequently and unexpectedly, worker productivity improved.

Constant smog is a normal state of affairs for residents of China’s major cities, except during the 2008 Olympics when special air quality policies went into effect (in Beijing only) unfortunately.

An improved quality of life picture for Beijing residents worked to improve overall productivity, improving the bottom line for Chinese companies.

Certain other perks were added, including never-before-seen-in-China freedoms to travel and to miss time from work in order to travel to the Olympics.

That’s what I call a virtuous circle!

Imagine if that could be made permanent. It’s an example of how improved lives for workers can positively affect productivity and the bottom line.

By employing end-user heuristical data, developing nations could double their GDP growth annually.

For the rest of us; Now that the standard economic tools to increase growth have largely ‘topped-out’ in developed nations, it’s now time to look at improving the lives of citizens by using heuristical analyses — to increase the happiness of citizens, which will increase productivity, improving the bottom line, leading to higher GDP growth.

The proof that this works well is easily found by investigating the Norwegian, Danish, Swiss, Swedish, Liechtenstein, and UAE economies.

Ultimately, the question is a regional one; How can we improve the lives of workers and their families so that productivity can be enhanced, and thereby improve annual GDP growth?

Some nations have asked, and the results have been astonishing.

Soon, people will be saying things like; “The synergy of the Good Economy is that the pursuit of happiness by individuals is directly related to the pursuit of worker productivity by corporations, which is directly related to the bottom line and GDP growth.”

And when those words are commonly spoken by both the masses and the elites, for the first time in history, our civilization will be firing on all cylinders — courtesy of the Good Economy.

by John Brian Shannon

We all need a Minister of Happiness!

by John Brian Shannon | Originally published at johnbrianshannon.com

I’m glad we live in a world where more than one country has a Minister of State for Happiness.

Ohood Al Roumi, Minister of State for Happiness in the United Arab Emirates.

Ohood Al Roumi, Minister of State for Happiness in the United Arab Emirates.

In contrast, the absence of a reasonable level of happiness means that all of our striving would ultimately prove to be in vain. It would be an unsustainable world where people spend their entire lives ‘fighting the good fight’ only to receive little or no reward at retirement and at points along the way towards retirement.

Why Hope (for happiness)? = Why Try? + Why Work?

Workers in the former Soviet Union used a phrase to illustrate this point; “As long as they pretend to pay us, we will pretend to work.”

And so, due to a lack of national happiness (caused by economic hardship) eventually the whole corporation formerly known as the USSR, collapsed.

The example of the former Soviet Union should serve as a warning to leaders of every country that the final and most profound metric for human beings is happiness — everything from worker productivity, to corporate profit, to the ambient level of law and order throughout a given society, to the success of our entire civilization — all of this hinges on the happiness metric.

So far, only Bhutan with their decades-old Gross National Happiness (GNH) index, the UAE, Venezuela, and the United Nations have given this profound societal element any serious consideration.

Bhutan: What is Gross National Happiness?

Very recently, the state of Madhya Pradesh announced that it will be the first state in India to create a Department of Happiness.

Madhya Pradesh creates a Department of Happiness

We employ ‘reverse engineering’ to our study of (all states of) matter in the universe, to the study of time, and to the study of the various lifeforms on this planet — shouldn’t it follow that we use reverse engineering to study and measure the societies and cultures within our civilization?

By ‘working it back’ regardless of the (pro tempore) results, Bhutan, the UAE, Venezuela, and the Indian state of Madhya Pradesh gain a huge and ongoing advantage by exploiting the data from the most profound human metric of all — Happiness!

Isn’t it interesting that the ‘Happiest Nations’ also lead the world in so many categories, including productivity, per capita income, the arts and sciences, and quality of life.

Bonus Graphic:

Social Progress Index 2015

Social Progress Index 2015. Click on the image to visit the Social Progress Imperative website.


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