GDP growth as a measure of economic well-being tends to serve the interests of Big Business rather than those of ordinary people.
Watch all the episodes of this excellent film ‘The Corporation’, described by many as the best documentary they have seen.
In mainstream economic thinking, there are a few fundamental assumptions that are rarely questioned – and they form the basis of economic theory. These assumptions have been so widely disseminated and taught that very few even think of alternatives.
The idea behind economist Adam Smith’s ‘Invisible Hand’ is that the individual self-interest of ordinary people drives not only themselves to beneficial behaviour but is capable of allocating resources efficiently in the market.
The problem is that self-interest is usually driven by greed and the quest for ever-increasing profits. For a corporation, this self interest means its primary objectives are profit maximisation and maximisation of shareholder wealth – no matter how much harm it causes society or the environment. In fact, a corporation will often do its utmost to achieve these objectives – sometimes over-riding all other considerations even if they cause harm. Full article here.