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Part I: Speed
Article 1
Growth, Public Policy, and the Economics of the Good Life
Author: Ed Dolan • June 24th, 2013 •
In the first part of my review of Robert and Edward Skidelsky’s How Much is Enough? I looked at the puzzle of leisure. Why, the Skidelskys ask, do we work so hard, even when we are well enough off to afford the additional leisure we need to live a good life? Beyond that follow some even more important questions: What is a good life, anyway? Does endless economic growth make it easier or harder to live a good life? What kinds of public policy could help us live better? These questions contain both economic and philosophical elements, a combination that the Skidelsky team—the father, an economist, the son a philosopher—are eminently qualified to take on. This second part of my review explores some of their answers.
[Time 1]
The elements of the good life
The Skidelskys see seven “basic goods” as essential to a good life:
• Health, by which they mean all that is necessary to vitality, energy, and alertness.
• Security, the expectation that one’s life will not be disrupted by war, crime, revolution, unauthorized government surveillance, or social and economic upheavals.
• Friendship, in a broad sense that encompasses family, lovers, workmates, and others.
• Respect, which means that others indicate, by some formality or otherwise, that one’s views and interests are worthy of consideration, even if they don’t agree with or like them.
• Personality, sometimes called autonomy, which means the ability to frame and execute a plan of life according to one’s tastes, temperament, and conception of the good.
• Leisure, not just rest and relaxation, but activities that we pursue for their own sake, not for the sake of obtaining something else.
• Harmony with nature, which they do not define as clearly as the others.
On the whole, I like the thinking behind this list of basic goods. I agree with its rejection of the notion that pursuit of the good life consists of nothing more than accumulating an ever greater quantity and variety of material goods and paid services—the lifestyle so aptly mocked in the bumper sticker that reads, “He Who Dies with the Most Toys Wins.”
The Skidelskys are not the first to grapple with the question of what constitutes a good life. They consider what several other thinkers have had to say, ranging from Aristotle to John Rawls. For some reason, though, they omit one of the best known treatments, one with close parallels to their own: Abraham Maslow’s hierarchy of needs. In its simplest version, it includes five categories of basic needs:
• Physiological needs, such as food, shelter, and sleep
• Safety needs, including protection from threats of nature, crime, and war
• Belongingness needs, which can be satisfied in relationships with family, friends, workgroups, and communities
• Esteem needs, including self-respect and respect from others
• Self-actualization, a special term of Maslow’s that encompasses all aspects of fulfilling one’s potential through personal growth, creativity, and peak experiences. Maslow emphasizes that the specific content of self-actualization will vary greatly from one person to another.
[Time 1 Ends, 360 Words]
[Time 2]
These needs are hierarchical, in the sense that the next one cannot take priority until the previous one is substantially satisfied.
Most of the Skidelsky’s seven needs fit easily into Maslow’s hierarchy: Health is an outcome of meeting physiological needs, security and safety needs are the same, friendship is an element of belongingness needs, and respect is necessary to meeting esteem needs. Both personality and leisure, as defined by the Skidelskys, are necessary conditions for achieving what Maslow calls self-actualization. Really, it would not be too much to say that the Skidelsky’s list of basic needs is little but a reinvention of Maslow’s scheme, which social scientists of all stripes have been debating, criticizing, and putting to daily use for seventy years in applications from clinical psychology to sales training.
True, “harmony with nature” does not fit neatly into Maslow’s hierarchy, but then, it does not fit very well into the Skidelskys’ list, either. The fact that it is the only one of their seven basic goods for which they provide no definition is one indication. It is also hard to reconcile harmony with nature as a basic need with the Skidelskys’ view of mainstream environmentalism as essentially nonrational and romantic. Somewhat condescendingly, they write that:
the covertly religious character of the Green movement is often viewed, by friends and foes alike, as an embarrassment, a scandal, even. . . That is not our view. We respect and share the religious feeling at the heart of environmentalism. But we believe that this feeling is best expressed openly rather than hidden under the fig leaf of science.
[Time 2 Ends, 266 Words]
[Time 3]
Yet later, in laying out the criteria for selecting their basic goods, they consider but then reject religion, on the following grounds:
Now, while we might consider a culture devoid of religion or aesthetic experience to be impoverished, we would not call an individual who lacked either of these two things seriously harmed. There are many people who are simply “tone deaf” to art or religion but lead otherwise healthy, flourishing lives. . . our own goal . . . requires us to treat as basic only those goods whose lack constitutes a serious loss or harm.
Very well, but since there are also many people who are “tone deaf” to harmony with nature, why not dismiss that on the same grounds, especially after going out of their way to equate environmental and religious values? On the Skidelskys’ own terms, it makes no sense to consider harmony with nature a “basic need.” By comparison, Maslow’s more flexible framework allows people to fulfill the need for self-actualization in a variety of ways—through aesthetic experience for some, through religion for others, and through harmony with nature for others still.
[Time 3 Ends, 188 Words]
[Time 4]
The case against growth
Let’s turn now from psychology and philosophy to economics. The first question is, how much economic growth do we need to attain the good life?
The Skidelskys have a straightforward answer to this question: None.
The continued pursuit of growth is not only unnecessary to realizing the basic goods; it may actually damage them. The basic goods are essentially non-marketable: they cannot properly be bought or sold. An economy geared to maximizing market value will tend to crowd them out or to replace them with marketable surrogates
They follow this up with examples of ways in which growth has failed to contribute to achievement of the basic goods, or has seen them decline. Many of their examples are unconvincing, however. For example, they concede that life expectancy has increased. However, they say that the increase owes little to growth, but rather, to advances in medical technology and infrastructure. Are we to understand that economic growth has nothing to do with advances in technology and infrastructure? They cite increased divorce rates as evidence of a decline in friendship, without considering whether greater ease in escaping the domination of a spouse might facilitate women’s (and occasionally men’s) search for personality and autonomy. They lament the advance of industrial farming but sneer at organic food and farmers’ markets as “middle-class baubles.”
Details aside, however, there is one point on which I do agree with the Skidelskys. If we are concerned with making our lives better, we need to be concerned with the quality of growth, not just the rate of growth— “Growth for what, not of what,” as they put it. It is clearly the case that in many respects, the content of economic growth, as recently experienced, is not helping us get any closer to the good life, at least as far as anyone whose thinking has advanced beyond the “most toys win” stage understands it.
[Time 4 Ends, 314 Words]
[Time 5]
One problem is the bias of recent growth trends toward the already wealthy. (For some numbers to back this up, check out the clever interactive chart that you can find here.) For the already wealthy, added income goes largely toward buying positional goods, those that are valued mainly because they demonstrate one’s wealth relative to that of others. Even if we grant that moving up the positional goods ladder (for example, by ownership of one’s own jet rather than mere time-share access to a jet) helps satisfy a basic need for respect or esteem, not everyone can become relatively richer at the same time. Instead of contributing to a better life, then, pursuit of positional goods only adds to stress and subtracts from the leisure needed to pursue self-actualization.
Environmental externalities are another issue that raises the question, “growth of what?” Logically, if what we want is growth of goods, we should subtract growth of bads, like pollution, but conventional GDP accounting does not do that. True, believers in the environmental Kuznets curve will point out that some kinds of pollution, at least, reach a peak at middle levels of GDP and decrease thereafter.
As an example, consider that there is now more smog in Beijing than in Los Angeles, the world’s former smog capital. However, the environmental Kuznets curve does not arise entirely from market forces. To the extent that pollution decreases in wealthy societies, it does so because of increasing demand for public policies that internalize the externalities through regulations, taxes, emission trading, or whatever. China has so far been willing to accept the smog in return for keeping its export order book full, but now that it is getting richer, it is experimenting with pollution control policies, too.
The bottom line: Economic growth is not a sufficient condition for progress toward a good life as philosophers and psychologists see it. For countries that are already wealthy, it is probably not even a necessary condition.
[Time 5 Ends, 327 Words]
Source: Econo Monior
http://www.economonitor.com/dola ... s-of-the-good-life/
Part II: Obstacle
Article 2
Maslow’s Hierarchy of Needs and Economic Growth
Posted on November 6, 2012
Maslow’s hierarchy of needs, first proposed by Abraham Maslow in his 1943 paper “A Theory of Human Motivation,” is often illustrated as a pyramid like the one above. The idea is that human beings will not be able to focus on satisfying their higher level needs, such as creativity and respect, until they have satisfied their most basic needs, like food and sleep. Once they have taken care of their physiological needs, they can move on to worrying about their safety needs; once those have been met, they move on to their love/belonging needs, and so on.
Economists have already shown that economic growth can help people reach higher levels on the pyramid (The Wealth of Nations Revisited: Income and Quality of Life, 1995). This makes sense because as national income grows, people can afford to buy more food, water, housing, and other basic necessities. Rich nations can afford to build sanitation systems and basic infrastructure that people depend on to pursue their life goals. Clearly, causation runs one way, but it does it go the other way too? In other words, if the government were to design its domestic policy to meet all the physiological and safety needs of its citizens, then would its labor force be more productive?
A cursory look at the world GDP per capita rankings, as determined by the World Bank, reveals much about what types of policies might lead to higher productivity (GDP per capita is a measure of productivity). In the top ten, there are five countries that can aptly be described as social democracies, i.e. countries whose governments provide generous, universally-accessible public services, including education, health care, child care, and workers’ compensation. These five countries are Norway, Australia, Denmark, Sweden, and Canada. The other five are very small countries that depend on a single industry for outsized incomes. There are the petrostates, Kuwait and Qatar; the financial centers and international tax havens, Switzerland and Luxembourg; and the East Asia gambling mecca, Macao. If the United States, currently ranked 14th, wants to improve its workers’ productivity, it should look to the five large countries, rather than anomalous small countries, for guidance.
Note that all I have shown so far is that there is a correlation between GDP per capita and the level of public services provided by the state. Some people might even argue that a few of the social democracies would be more appropriately placed in the “anomalies” category. There is an argument to be made that Australia’s wealth is derived from the combination of its abundant natural resources and China’s insatiable thirst for raw materials. But then again, maybe not. The Scandinavian countries have their fair share of natural resources as well, not least among them oil, so maybe that’s how they manage to fund a generous welfare state while maintaining a high GDP per capita.
To make the case for causation, we need to examine one of the basic principles of economics: risk aversion. Economists observe that in the presence of uncertainty, people are usually risk averse, meaning given the choice between investing in a risky investment with a high rate of return and a less risky investment with a relatively lower rate of return, they will choose the less risky option. This risk aversion is compounded by the relatively new discovery from behavioral economics that people have a loss aversion bias, which means they care more about preventing losses than acquiring gains. For example,one study showed that if you want to motivate students to perform well on tests, you should give them the reward before the test and then threaten to take it away if they fail to achieve a certain score. The study found that this incentive is more powerful than telling the students they will be given the same reward after the test is completed if they meet the threshold.
So people inherently don’t like taking risks and they don’t want to lose what they already have. This presents a clear and present danger to economic growth, as most economists believe entrepreneurship, also known as risk taking, is an important driver of innovation and increases in productivity. To help illustrate this theory, let’s consider the hypothetical case of Joe the Plumber. Let’s assume Joe works 40 hours a week at a mid-sized plumbing company in Cleveland, Ohio. Joe currently makes enough money to feed his family of four, maintain their health insurance coverage, and save for his kids’ college education. Now suppose that Joe wants to start his own plumbing company. To do this he will have to take business classes at a community college, take out a loan from the bank, and decide which tools, office space, technology, and transportation to invest in, just to name a few. Joe will also have to devote a lot of time to working on the new business, so he will need to spend more money on child care services. If this business were to fail, it would be a serious financial hardship for Joe’s family and he would have to discontinue the family’s health insurance and stop adding to his children’s college funds. Not wanting to lose what he already has by taking unnecessary risks, Joe forgoes the opportunity to start his own business. The economy stagnates.
But if Joe were to start his business in say, Norway, he wouldn’t have to worry about many of these downside risks. His whole family would be entitled to health care, education, child care, and other public services, no matter the fate of his new business. What does Joe do then? He takes the plunge and signs up for business classes, knowing that failure won’t irrevocably harm his family. The economy now has one more entrepreneur hoping to strike it rich. If he succeeds, the economy will grow larger than it otherwise would have been able to.
Now many would argue that the possibility of grave personal financial hardship is an important motivator for a businessman to succeed. This may be true on some level, but let’s not exclude the other reasons people start businesses. Being the owner of your own business merits a certain level of respect in the community and gives you a sense of achievement that is difficult to find elsewhere. Furthermore, a successful business would undoubtedly boost its owner’s confidence and self-esteem. There are myriad reasons to work toward making a business successful, aside from avoiding personal financial catastrophe.
This simplification is not meant to be a dispositive example of the effects of social democracies on economic growth in all cases, or that the total economic benefits of a large welfare system outweigh the total economic costs. I merely wanted to show that by securing the lowest levels of Maslow’s hierarchy of needs, it is possible there will bemore, not less, economic growth than without doing so. Indeed, there seems to be much evidence to recommend this framework for domestic policy and proponents of a stronger welfare state would stand to benefit from adopting it.
[Obstacle Ends, 1167 Words]
Introduction:39s
Time1:2m16s
& Skidelskys see seven basic good as essential to the good life, but he is not the only person who have said this idea ,
maslow also has modeled a five hierarchy needs.
Time2: 1m22s
& Skidelsky's seven basic goods somehow fit the maslow's five hierarchy needs models.Skidelsky's seven basic goods ,not
the maslow's hierarchy needs are harmonious with nature.
Time3: 1m01s
&maslow's work is more flexible for people to fulfill the the need for self-actualization.
Time4: 1m43s
明天继续
&Economic growth didn't contribute to these basic goods.
Time5: 2m22s
&Economic growth isn't mean to life's quality increasing, growth what is the critical point ?
Obstacle: 6m16s
1 maslow's hierarchy of needs or the pyramid is going up step by step.
2 An experiment show that people is more fear that losing something which have already possess,
rather than cant attain something reward.
3 If there have complete welfare system, the person who run a business will be more stick into their
business,with the productivity increasing.
4 Maslow's needs pyramid will be a guidence for government to make domestic policy and welfare system.
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