COMMENTARY
On June 6 of last year, I wrote in this column that the Great Recession starting in 2008 was bad for most people except those who wrote about it. Dozens of books have been published and I mentioned three that had interested me in particular _ two by Joseph Stiglitz and one by Jeffrey Sachs. These books ask more fundamental questions than most about the causes of the current economic problems.
In Freefall: America, Free Markets, and the Sinking of the World Economy, Stiglitz attributes the Great Recession and lingering economic problems to what he calls a moral deficit, which I believe was also the main cause of the 1997 financial crisis in Thailand.
He, however, did not provide detailed proposals as to what to do about it, neither in that book nor in the subsequent one entitled, The Price of Inequality: How Today's Divided Society Endangers Our Future. In this book, he warns about inequality which tends to lead to instability which creates more inequality which leads to more instability _ a vicious circle that seems to have engulfed us.
In The Price of Civilization: Reawakening American Virtue and Prosperity, Sachs suggests the way out: work toward a mindful society, with moderation or the middle path as its main component. This idea, of course, is central to what is known to many Thais since 1997 as Sufficiency Economy.
After writing that article, I came across another book that provides more illumination. It is How Much Is Enough? The Love of Money and the Case for the Good Life, written by Robert Skidelsky and Edward Skidelsky. This book posits that while providing us with increased supplies of goods, capitalism has pushed us to want more and more, leading to an endless pursuit of growth for its own sake, not for the sake of what the authors consider should be our ultimate aim _ the good life. The insatiable wants and the endless pursuit of economic growth are the root causes of our problems.
To break the cycle, they propose that we aim for the good life along with whatever economic target is required to get there. If growth is needed, then pursue it.
The authors consider the following seven basic things as essential for the good life:
- Health _ the full functioning of the body as nature intends. To have that, we need all things that are required to sustain a reasonable span of life, which include food, clothing, shelter and medical care.
- Security _ life undisturbed by crime, war, revolution or major economic and social upheavals.
- Respect _ one's views and interests are regarded as worthy of consideration, as things not to be ignored or trampled on.
- Personality or autonomy _ the ability to frame and execute a life plan according to one's tastes, temperament and ideals. Private property is central to this.
- Harmony with nature _ cities which are not entirely alienated from their rural surroundings.
- Friendship _ robust, affectionate relationships, both inside and outside the family.
- Leisure _ rest, relaxation and activity that is pursued for its own sake, instead of as a means toward some specific end.
It is apparent that to achieve these basic things requires more than the adjustments of economic policy, which the authors suggest be aimed at two outcomes _ the fruits of productivity are shared more evenly and the pressure to consume is reduced. To achieve these, they suggest raising the share of income received by teachers, doctors, nurses and other public service professionals, legislating for a progressive reduction in hours of work, guaranteeing basic income for all citizens, broadening sumptuary laws and general consumption tax, imposing stricter control on advertising and disallowing firms to write off advertising as a business expense.
This book is aimed mainly at advanced countries which the authors believe may be producing enough output to meet the needs of every citizen already. They suggest that the adjustments of their economic policies be aimed not only at domestic needs but also at the needs of poorer countries _ to assist the latter to climb to the level of sufficiency that the advanced countries have already achieved. For this, they suggest concentrating on capital exports as well as reducing emphasis on free trade.
The authors say that their suggestions are not cast in stone; they should be further discussed and modified. Considering what has happened since 1997, I believe Thailand would benefit from these recommendations, and learn how the policy adjustments can be applied.
Aiming solely for the highest possible Gross Domestic Product growth rate or looking at the impractical, nebulous Gross Domestic Happiness rate is missing the mark.
Sawai Boonma has worked as a development economist for more than two decades. He can be reached at sboonma@msn.com.
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Source: http://www.news.thethailandlinks.com/2013/01/02/moderation-provides-key-to-happiness/
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