Why Having More No Longer Makes Us Happy
Smith’s core ideas — that individuals pursuing their own interests in a market society end up making each other richer; and that increasing efficiency, usually by increasing scale, is the key to increasing wealth –have indisputably worked. They’ve produced more More than he could ever have imagined. They’ve built the unprecedented prosperity and ease that distinguish the lives of most of the people reading these words. It is no wonder and no accident that Smith’s ideas still dominate our politics, our outlook, even our personalities.
But the distinguishing feature of our moment is this: Better has flown a few trees over to make her nest. And that changes everything. Now, with the stone of your life or your society gripped in your hand, you have to choose. It’s More or Better.
Which means, according to new research emerging from many quarters, that our continued devotion to growth above all is, on balance, making our lives worse, both collectively and individually. Growth no longer makes most people wealthier, but instead generates inequality and insecurity. Growth is bumping up against physical limits so profound — like climate change and peak oil — that trying to keep expanding the economy may be not just impossible but also dangerous. And perhaps most surprisingly, growth no longer makes us happier.