Growth That Costs More Than It's Worth

Robert Samuelson's prescription for ending global poverty [op-ed, May 28] is simple: "The solution to being poor is getting rich. It's economic growth. We know this." The first sentence is a statement of the obvious, so let it go. But is "economic growth," as universally measured by gross domestic product, really making us richer? This is exactly what we do not know.

In fact, there are theoretical reasons and empirical evidence for believing that in our already full world, further growth in GDP is increasing environmental and social costs -- including resource depletion, pollution, climate disruption and inequality -- faster than it increases production benefits, making us poorer, not richer. This is especially true for rich countries, but probably also true for some poor countries. How does Mr. Samuelson know that the marginal benefits of GDP growth are greater than the marginal costs?

GDP does not separate costs and benefits -- it counts both as "activity."

Economists have certainly failed to show that beneficial activity is currently greater than costly activity, or to refute the contrary evidence provided by the Index of Sustainable Economic Welfare, the Genuine Progress Indicator, the Ecological Footprint or the Happy Planet Index. GDP growth has probably become "uneconomic growth" that makes us poorer, not richer. If you are dealing with an ailment caused by medication, the worst possible Rx is to increase the dosage. Mr. Samuelson merely echoes the sonorous snoring of supine economists in deep, dogmatic slumber. They should wake up!

HERMAN E. DALY

University Park