The latest Report to the Club of Rome focuses on three endemic social challenges – inequality, unemployment, and climate change – and offers 13 radical policy solutions for industrialized countries to address these problems without the need for faster economic growth.
In a comprehensive empirical analysis the Report shows that for more than 30 years there has been healthy economic growth in most of the rich world and yet the well-being of the majority of people has not improved. The gap between rich and poor has widened, millions remain without work and real wages in many countries have stagnated or fallen. Even so, conventional economists still believe that the answer to these problems is faster economic growth. They tell us that faster growth will create more jobs and boost living standards. This is fundamentally wrong, says the Club of Rome’s new book »Reinventing Prosperity. Managing Economic Growth to Reduce Unemployment, Inequality, and Climate Change«.
According to the authors, Graeme Maxton and Jorgen Randers, continuing on the current economic path is not only wrong, but extremely foolish, for it will worsen the problems, not solve them. They expose the myths of the current economic system and offer alternative ways to reduce unemployment, inequality, and climate change that include:
a new definition of paid work,
fair taxation on business and resources,
restrictions on trade when necessary,
the introduction of a basic income for the poorest third of the population,
increased paid vacation.
Some of their proposals are radical and will face opposition – but the authors are optimistic that they can be adopted by policy makers:
»Our suggestions are feasible because they offer immediate benefits to the democratic majority,« says Graeme Maxton »They not only create a better world in the long run but also provide benefits to most people in the short-term
.« More information on the new Report. Club of Rome