Tag Archives: economic growth

A glimmer of hope in a dark world

Looking at the news, it can be easy to see only a world full of death, destruction, poverty, environmental decay, rising terrorism and crime; a world full of greed and corruption, with fanaticism, prejudice and ignorance in place of reason and knowledge; a world with barriers replacing bridges. It is especially hard to see the leaders we so badly need to get us out of the mess. We have a collection of some of the worst western leaders of my lifetime, whose main skill seems to be marketing, avoiding answering legitimate questions put to them by their electorates, and always answering different questions that present their policies in a more favorable light. A reasonable person who just watches news and current affairs programs could get rather pessimistic about our future, heading towards hell in a cart driven by an idiot.

But a reasonable person should not just watch the news and current affairs. They should also watch and read other things. When they do so, they will see cause for hope. I study the future all day, almost every day. I am not pessimistic, nor am I an idealist. I am only interested in what will actually be, not in wearing politically tinted spectacles. I can see lots of things down the road, good and bad, but I see a future that is better than today. Not a utopia, but certainly not a dystopia, and better overall. If asked, I can spin a tale of doom as good as anyone, but only by leaving out half of the facts. I often address future problems in my blogs, but I still sleep well at night, confident that my descendants will have a happy and prosperous future.

Leaders come and go. Obama will not be recorded in history as one of America’s better presidents and he has done little for the credibility of the Nobel Peace Prize. Cameron will be remembered as one of our worst PMs, up there with Brown and (perish the thought) Miliband. Our drunkard EU president Juncker won’t shine either, more likely to increase corruption and waste than to deal with it. But we’ll get better leaders. Recessions also come and go. We may see another financial collapse any time now and maybe another after that, but the long term still looks good. Even during recession, progress continues. Better materials, better science, better medical tools and better drugs, better transport, better communications and computing, better devices, batteries and energy supplies. These all continue to improve, recession or not. So when recession finally subsides, we can buy a better lifestyle with less money. All that background development then feeds into recovered industry to accelerate it well past the point where recession arrived.

It makes sense therefore to treat recessions as temporary blockages on economic development. They are unpleasant but they don’t last. When economies become healthy again, development resumes at an accelerated rate thanks to latent development potential that has accumulated during them.

If we take 2.5% growth as fairly typical during healthy times, that adds up to prosperity very quickly. 2.5% doesn’t sound much, and you barely notice a 2.5% pay rise. But over 45 years it triples the size of an economy. Check it yourself 1.025 ^ 45 = 3.038. National debts might sound big compared to today’s economies but compared to 45 or 50 years time they are much less worrying. That assumes of course that we don’t keep electing parties that want to waste money by throwing it at national treasures rather than forcing them to become more efficient.

So there is economic hope for sure. Our kids will be far wealthier than us. In the UK, they are worried about debts they accumulate at university, but by mid-career, those will be ancient history and they’ll be far better off after that.

It isn’t all about personal wealth or even national wealth. Having more resources at your disposal makes it possible to do other things. Many countries today are worried about mass migrations. Migrations happen because of wars and because of enormous wealth differences. Most of us prefer familiarity, so would only move if we have to to get a better life for ourselves or our kids. If the global economy is three times bigger in 45 years, and 9 times bigger in 90 years, is genuine poverty really something we can’t fix? Of course it isn’t. With better science and technology, a reasonable comfortable lifestyle will be possible for everyone on the planet this century. We talk of citizen wages in developed countries. Switzerland could afford one any time now. The UK could afford a citizen wage equivalent to today’s average wage within 45 years (that means two average wages coming in for a childless couple living together and even more for families), the USA a little earlier. By 2100, everyone in the world could have a citizen wage equivalent in local spending parity terms to UK average wage today. People might still migrate, but it would be for reasons other than economic need.

If people are comfortable financially, wars will reduce too. Tribal and religious conflicts will still occur, but the fights over resources will be much reduced. Commercially motivated crime also reduces when comfort is available for free.

Extremist environmental groups see economic growth as the enemy of the environment. That is because they generally hate science and technology and don’t understand how they develop. In fact, technology generally gets cleaner and less resource hungry as it develops. A 150g (6oz) mobile not only replaces a ton of early 1990s gadgets but even adds lifestyle functionality. It uses less energy and less resource and improves life. Cars are far cleaner and far more efficient and use far less resources than their predecessors. Bridges and buildings too. Future technology will do that all over again. We will grow more and better food on less land, and free up land to return to nature. We’ll help nature recover, restore and nurture ecosystems. We’ll reduce pollution. The 2100 environment will be cleaner and healthier than today’s by far, and yet most people will lead vastly improved lives, with better food, better homes, better gadgets, better transport, better health, more social and business capability, more money to play with. There will still be some bad leaders, terrorist groups, rogue states, bad corporations, criminals, social problems.

It won’t be perfect by any means. Some people will sometimes have bad times, but on balance, it will be better. Utopia is theoretically possible, but people won’t let it happen, but it will be better for most people most of the time. We shouldn’t underestimate people’s capacity to totally screw things up, but those will be short term problems. We might even have wars, but they pass.

The world often looks like a dark place right now and lots of big problems lie ahead. But ignore the doomsayers, look beyond those, and the future actually looks pretty damned good!

 

Future population v resources. Humans are not a plague.

This entry now forms a chapter in my book Total Sustainability, available from Amazon in paper or ebook form.