Governments follow the wrong rainbow

The writer, an FT contributor, the executive director of the UK Royal Art Society and the UK Bank is a former chief economist

Growth for many governments is the new God. Even among the ecumunitics, the growth of the growth is a leader. The growth of the British government is the most important mission of their lives for zealots. This puts them in a state of eternal, to celebrate every GDP (if good) or confessory (if bad).

It is a strange century to religious loyalty, a century old citizen for a abstract and very unthinkable, statistical concept. However, zeal reflects the new global economic reality of the stronger: growth finished. G7 is more than half of the growth rates when compared the first 25 years of the 21st century to the last 25 years of the 21st century.

This low shift is significantly favorable for the consequences of Total Nokaut Knock-Societies – leaning on living standards, all debts and government services. In the mixture, it gave public dissatisfaction and political fragility. Recovering growth will result in strong headlines, economic and social and political procurement.

But would it be? In this century, the growth of GDP has not been guaranteed, especially among low-income households. In the United States, Median real income has been irritated since the 1980s. In the UK, the median real payment is lower than the global financial crisis period. No letters sees: 50 percent of revenues are expected to be lower than the beginning of this parliament, as in the beginning of this parliament.

During the Brexit Referendum Dispute, a member of a spectator rebuked a panelist: “This is our bloody GDP.” There was a statistical truth in this quip. It was recently in the UK, but in the United States and beyond, but in the United States and beyond, there was another in geographical and socio-economic. And as described in the brexit, inadequate and non-centered growth in the southeast, only adds public dissatisfaction.

The connection between income and public satisfaction is complicated. The link in the income level, which is about $ 75,000 per person, the link is completely disappeared – the so-called Easgerlin Paradox, in 1974 Prof. in 1974. Found by Richard Easterlin. On top of these levels, money cannot really get love (or happiness). However, this limit is nuanced in connection between the income and well-being.

According to citizens, Academician Carol Graham’s research is more important for satisfaction with the most mobility and income satisfaction. For example, poor communities and countries where prospects are very improved than before previous generations, or are more common than the generation of prospects. In short, generation travels are more important than GDP directions.

As for welfare, then social mobility violates national income. Success in a sustainable society is more likely to have more opportunity to make an opportunity than gaining profit. The concept (but less former, but less abstract) concepts is the key to GDP, growth and satisfaction – in 1931 “American dreams of the generation of development discussed by James Truslow Adams.

Most American imagination died for many. The surveys now believe that they believe in the “true of American dream” in the quarter of Americans. It was recently as much as 2010. These feelings of “Opportunity Opportunity” built by economist Raj Chatty suggests that these feelings are standing for social mobility or in many parts of the last half century and a new reality withdrawn.

The social mobility measures of the United Kingdom offers similar standing or withdrawal. Today, in his twenty years old and thirty years, the average person with inflation accounting, in the equivalent age of the equivalent. Many are less likely to be home than their grandparents and great grandparents. For them, the escalator of opportunity has stopped or inverse.

For many, this begins at the beginning of life. In the UK, the 45mn children grow in poverty. Poor children are more than twice for those who can be excluded from school and are third-year-old. A generation of risks are lost. And today’s lost generation is the lost growth of tomorrow.

Generation progress in 19 and 20th centuries, for the first time in the history of human history, progress has become a social norm. In this century, the erosion of social mobility, resulted in the desire, and reduced the expectations, and stopped the growth of individuals, communities and nations.

Michael Young Meritocracy’s rise Social stratification by academic achievement painted a dystopia picture. This fabrication world has been today’s reality for about 70 years. Meritocracy’s rising has fallen the fortune of those who are low or no academic. The effect is not its cause, not its cause. The escalator of the opportunity is a fool’s task followed by the growth without restarting.

GDP measures everything other than those who are valuable. In 1968, the words of Robert F Kennedy are more trueers than then. Stalled Social Mobility, continuously prevented the only reliable way for welfare and growth. In the prioritization of national growth on the local opportunity, governments pray in the wrong altar and persecute the wrong rainbow. I will discuss how to follow the right one next week.