Yorkshire Liberal asks important questions

This article was first published in the Malton Gazette and Herald, October 2011

The developed world has a serious health problem. Many people eat more than is good for them and certainly more than they need. Result – a massive number of obese people. Compare this with the financial wisdom ‘We must have more growth.’

To reduce the national debt the ConDem government and the Labour opposition call for growth. News bulletins announce the bad news that: ‘There has been no growth in; retail sales; house prices; manufacturing output etc.’ Interest rates must stay low so  as to create jobs, encourage businesses and of course stimulate growth. In food terms each year Britain must have a larger cake.

If every household had to have a ‘real increase’ in income every year most domestic budgets would fail.  A household has to budget on present income. So, why don’t governments?

People want to be happier, healthier, live longer and most of all feel part of a fair community or society. We are paddling like hamsters so as to turn the wheel faster. The economy turns faster but we have gained nothing at all. Two questions need to be answered:

• Does wellbeing improve with increased consumption?
• Does wellbeing improve with increased growth?

Growth is greater if consumers buy new items. The manufacture of a new washing machine produces growth. Money goes into the hands of big business and banks. As a result the bank receives its capital plus interest. Having the washing machine repaired does little for growth. It does however provide work and profit for the local community. Equally giving the old washing machine away is good for the community.

The waste pyramid is the opposite of growth. Reduction, repair, re-use and recycle all do little for growth. Incineration gives growth and profit for multinational companies and banks.

We have had growth over the last 15 years. It has been driven by a housing bubble. People borrowed on the increased ‘price’ of their house. This produced a massive increase in consumer spending. What has not risen is the ‘value’ of the house. This debt driven consumption is not good for Britain let alone its people.

The impact of growth on health is equally questionable. At very low average income levels life expectancy is low and infant mortality high. Once a country achieves modest income levels most of the gains have been achieved. Cuba, at an average income of £4,000 per year has the same life expectancy as the UK with an average income of over £20,000. Similarly Chile with an average income of £8,000 per year has the same level of infant mortality as the UK. Once growth has lifted countries like Malawi and Mozambique up to Cuban and Chilean levels little further may be gained.

Growth is lining the pockets of bankers, multinationals, money dealers and the very rich. It appears to do little for working people. The cake gets bigger while our crumbs stay the same. In the present crisis there are even fewer crumbs.

John Clark