tiistai 22. joulukuuta 2015

The question is: How can welfare be guaranteed without growth?

According to the prognosis of the International monetary fund the countries of the greatest economic growth in the year 2015 are Papua New Guinea, Congo and Turkmenistan. Ethiopia, Myanmar and Ivory Coast are the following ones.

The strong economic growth is natural there, where there is much to do, to build and to repair. In the old industrialized countries there is merely no growth. The industry is now very much in the traditional role of the agriculture. The increasing efficiency of the production decrees the employment not to mention the relocation to the cheaper countries. During the period of time 2007 - 2015 there were 80000 industrial working places lost in Finland. The automation is making progress in the services as well.

What do we want? We have to make the decision, now. If we want the economy to grow continuously, we have to understand, that the commonly desired yearly growth of three percentages of the gross national product equals growing twenty times bigger in a century. For the moment the consumption of the natural resources is already oversized. We will destroy the natural resources, if we continue the modern level of consumption. Meanwhile we will destroy ourselves- the human being, who is dependent on the natural resources.

If we want to change the modern destroying development and guarantee welfare, we have to leave the desire the economic growth. The fact is that the economic growth and the well fare increased simultaneously for a very long period of time. They separated from each other as late as in the 1980ies both in Finland and in all over the rich countries. For the moment many actions to increase the economic growth decrease the welfare, which is not any longer depending of the amount of the consumption, when a special limit has been achieved.

The national economy of Finland was doubled during the period 1990 - 2007. In the same time the amount of poor families with children was multiplied and the incomes of the poorest rushed one third.

The consumption society is grounded on the created disappointment. The needs are made stronger and new needs are created. They are filled by gods and services. The advertisement and -psychology have a strong position, because the human being has also basic needs like alimentation and accommodation. The modern economic model does not however make a difference between basic needs and luxury consumption.

The financial system is based on debt. This complex creates the necessity of growth. The economic model, which is based on the continuous growth, is a wrong one. It has to be rejected, because it is misleading and it is destroying the possibilities of the future. Simultaneously the development, which transforms the power from the citizens to the companies, has to be stopped.

Instead we need the economic system, which offers justified circumstances, that is equality between the human beings and a balanced economic development. The state has to protect the human being and -especially the circumstances of the function of the small firms has to be made better. It is possible to increase the quality of life. Labour and meaningful tasks are needed by everybody, who is able to work. It is necessary, that everybody can continue living with fulfilled basic needs. Giving up the necessity of growth does not mean poverty but sufficiency and welfare.

This concept of economy is a well known one. A central bank owned by the state, a own currency, an independent parliamentary legislation and financing by the central bank; all this has been tested and found to work in real life. A balanced economy and national economy can be founded on this concept. For example the possibilities of paying basic income to the citizens should be considered according to this concept.

It is necessary to find the right questions concerning the future. Then it is possible to find good answers. One of the central questions is how to guarantee the welfare without growth.

Antti Pesonen

Chairman of The Independence Party of Finland 2004 – 2015

Ei kommentteja: