Overcoming the myths of mainstream economics to enable a new wellbeing economy
This report discusses the flawed theoretical pillars of mainstream economics that support unsustainable environmental, social, and economic outcomes. The paper identifies paradoxes and delusions in theories related to efficiency, wealth, well-being, and economic growth. It argues that adopting a new approach that prioritises well-being can help overcome these challenges.
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OVERVIEW
Efficiency and resource use
The paper points out that the theoretical pillars of mainstream economics regarding efficiency and resource use are flawed. Empirical evidence suggests that markets are not as effective as assumed, resulting in the over-utilisation of natural resources. The paper urges policymakers to recognise that the market does not optimise resource allocation and to manage natural resources sustainably.
Wealth and well-being
The paper suggests that individuals and societies, as well as governments, should prioritise well-being over wealth. It argues that GDP is an inadequate measure of a nation’s prosperity and sustainability. The authors call for the adoption of new metrics to measure well-being and prosperity beyond monetary wealth.
Economic growth
The paper raises concerns about the long-term viability of the current economic model that emphasises economic growth above everything else. The authors suggest that a new model for the economy is required to achieve long-term stability and sustainability. They recommend the adoption of policies that allow for natural resource sustainability and measures that prioritise well-being alongside economic growth.
Policy recommendations
To overcome the paradoxes and delusions of mainstream economics, the paper puts forth several policy recommendations. Firstly, the authors suggest that policymakers need to manage natural resources better. Secondly, the paper calls for the development of new metrics that go beyond GDP to measure prosperity and sustainability. Finally, it recommends policies that focus on both economic growth and well-being to achieve long-term stability and sustainability.
Examples are given of governments and institutions that are trying to adopt a new approach to economic growth. The authors suggest that a wellbeing economy is a crucial component of future policy advising and economic transition, with a commitment to put well-being at the heart of policymaking.
Conclusion
The economic theories that underpin the current economic model are flawed, and empirical evidence questions their validity. The authors argue that a new model is needed to achieve long-term stability and sustainability. Natural resource sustainability and measures incorporating well-being, along with economic growth, are central to this new model.
