RETHINKING THE PURPOSE OF ECONOMIC POLICY

The purpose of economic growth must be to improve the ease of earning and living for all

- ARUN MAITRA

enterprises prevailed over socialism, and communism was buried. Economic science in its present state cannot provide solutions for problems it has unwittingly caused. Benefits of growth are not flowing down quickly enough to nourish society equitably. Movements from the Left and the Right are rising to challenge neo-liberal ideology. Liberals are alarmed by the rise of authoritarian governments and demands for local jobs and self-reliance even in the US. New models of economic growth are required, which do not exploit nature, and improve the distribution of well-being and equitable opportunities for all citizens, not just increase GDP.

Reforming economic policies: Problems caused by lopsided economic growth cannot be solved with the same economics that has caused it. Before pressing for more reforms, economists should reconsider some fundamentals for good public policies.