Are we confusing money with well-being? New Zealand's leaders believe so.
New Zealand's recent budget policy puts the health and well-being of its citizens over economic growth.
- Economists and politicians have traditionally focused on economic growth to set policy and measure how citizens fare.
- New Zealand has become the first country to put well-being, not growth or production, at the center of its economic policy.
- Calls for "purposeful capitalism" are emerging in other countries, including the United States.
Politicians love to flaunt economic growth. A healthy gross domestic product (GDP) means an economy is doing well, which means the country is doing well, which means its citizens are doing well. It's all thanks to sagacious policy crafted by our savvy political leaders.
That's the rosy narrative anyway. In truth, GDP measures the average of per capita output in an economy overall, but tells us little about the prosperity of individual citizens.
For example, GDP can increase in tandem with income inequality. Social mobility can be quashed even within a prosperous economy. Corruption can take root in rich countries. And production measurements can ignore consequences such as environment degradation.
Some economists argue that our love affair with GDP needs to end and be replaced with more robust economic measurements. As Nobel Prize laureate Michael Spence told The Atlantic:
"Many of us think we would benefit from a multi-dimensional approach that captures things people care about. Missing from [economic] growth are many things: health, distributional aspects of growth patterns, sense of security, freedoms of various kinds, leisure broadly defined, and more."
New Zealand's Prime Minister Jacinda Ardern has taken up that call. Last month the island nation unveiled its new well-being budget, a policy designed to put the health and happiness of its citizens at the economic fore.
Happiness as a benchmark of success
Prime Minister-designate of New Zealand Jacinda Ardern before her swearing in. Photo credit: Governor-General of New Zealand/Wikimedia Commons
New Zealand's new economic policy will shift away from growth and production as a measure of economic success. As noted in New York Times, its new focus will be on "goals like community and cultural connection and equity in well-being across generations." While other countries have reconsidered traditional economic metrics, New Zealand is the first to initiate such a wellbeing-guided policy.
"This is not woolly, it's critical," Ardern said at the World Economic Forum's 2019 meeting in Davos. "This is how we bring meaning and results for the people who vote for us. It's not ideological either. It's about finally saying this how [sic] we meet expectations and try and build trust back into our institutions again, no matter where we are in the world."
The revised policy sets five priorities for New Zealand's governmental spending: thriving in the digital age; improving mental health services; reducing child poverty; developing a low-emission, sustainable economy; and addressing inequality, especially among the country's Maori and Pacific Island peoples.
The new policy has earmarked nearly NZ$2 billion for mental health services. (New Zealand has one of the highest teen and young adult suicide rates among Western democracies.) Resources have also been designated for child poverty and long-term shelter for the homeless, more than NZ$1 billion and NZ$200 million respectively.
Of course, not every New Zealander is onboard with the budget's new direction. "New Zealanders won't benefit from a government that is ignoring the slowing economy and focusing instead on branding," Amy Adams, a lawmaker in the opposition National Party, said in a statement to the Times. "We're facing significant economic risks over coming years, but this government is focusing on a marketing campaign."
A well-being paradigm shift?
As noted by the World Economic Forum, it will take years for New Zealand to refine its goals and then quantify the results, but other countries' well-being experiments will help us gather data in the meantime.
The United Arab Emirates employs a Minister of State for Happiness and a National Program for Happiness and Well-Being. The program sets benchmarks for happiness and fosters conditions of well-being that allow employees to thrive within the country's economy.
Elsewhere, Bhutan uses a Gross National Happiness index to evaluate its citizens well-being and incentivize policymakers. The index measures nine categories, among them health, education, time use, living standards, and community vitality.
Neither country has budgeted for well-being as New Zealand has, and they still use the GDP growth standard. But both have supplemented traditional economics with more purposeful economic thinking.
Capitalism: the root of all happiness
Can a more purposeful capitalism take root in the United States and other Western democracies? That answer will depend on a whole host of variables, among them New Zealand's successes and failures. However, there are already calls for similar changes to take place stateside.
In his book The War on Normal People, Democratic presidential candidate Andrew Yang laid the foundation for what he calls "human-centered capitalism." Yang wants to establish a universal basic income that gives Americans over the age of 18 $1,000 a month, no strings attached. Yang's so-called "freedom dividend" is the centerpiece of his policy, but his aim is wider is scope. He wants the market to support human experiences it previously undervalued, such as the arts, parenting, teaching, the environment, community connections, and disenfranchised groups.
"We must make the market serve humanity rather than have humanity continue to serve the market. We must simultaneously become more dynamic and more empathetic as a society," Yang writes.
Similarly, the Green New Deal supports a multiplex of ideas that would feel at home with a wellbeing-based capitalism. To name a few: universal health care, a right to affordable housing, the restoration of Glass-Steagall, and debt relief for students and homeowners.
New Zealand is a small island nation — and so out of the way that it's often forgotten by mapmakers. Yet, it could be the start of some big changes in how we measure progress and happiness.
- New Zealand's well-being approach to budget is not new, but could ... ›
- New Zealand will have a new 'well-being budget', says Jacinda Ardern ›
- New Zealand 'wellbeing' budget promises billions to care for most ... ›
What can 3D printing do for medicine? The "sky is the limit," says Northwell Health researcher Dr. Todd Goldstein.
- Medical professionals are currently using 3D printers to create prosthetics and patient-specific organ models that doctors can use to prepare for surgery.
- Eventually, scientists hope to print patient-specific organs that can be transplanted safely into the human body.
- Northwell Health, New York State's largest health care provider, is pioneering 3D printing in medicine in three key ways.
The controversial herbicide is everywhere, apparently.
- U.S. PIRG tested 20 beers and wines, including organics, and found Roundup's active ingredient in almost all of them.
- A jury on August 2018 awarded a non-Hodgkin's lymphoma victim $289 million in Roundup damages.
- Bayer/Monsanto says Roundup is totally safe. Others disagree.
The pizza giant Domino's partners with a Silicon Valley startup to start delivering pizza by robots.
- Domino's partnered with the Silicon Valley startup Nuro to have robot cars deliver pizza.
- The trial run will begin in Houston later this year.
- The robots will be half a regular car and will need to be unlocked by a PIN code.
Would you have to tip robots? You might be answering that question sooner than you think as Domino's is about to start using robots for delivering pizza. Later this year a fleet of self-driving robotic vehicles will be spreading the joy of pizza throughout the Houston area for the famous pizza manufacturer, using delivery cars made by the Silicon Valley startup Nuro.
The startup, founded by Google veterans, raised $940 million in February and has already been delivering groceries for Kroger around Houston. Partnering with the pizza juggernaut Domino's, which delivers close to 3 million pizzas a day, is another logical step for the expanding drone car business.
Kevin Vasconi of Domino's explained in a press release that they see these specially-designed robots as "a valuable partner in our autonomous vehicle journey," adding "The opportunity to bring our customers the choice of an unmanned delivery experience, and our operators an additional delivery solution during a busy store rush, is an important part of our autonomous vehicle testing."
How will they work exactly? Nuro explained in its own press release that this "opportunity to use Nuro's autonomous delivery" will be available for some of the customers who order online. Once they opt in, they'll be able to track the car via an app. When the vehicle gets to them, the customers will use a special PIN code to unlock the pizza compartment.
Nuro and its competitors Udelv and Robomart have been focusing specifically on developing such "last-mile product delivery" machines, reports Arstechnica. Their specially-made R1 vehicle is about half the size of a regular passenger car and doesn't offer any room for a driver. This makes it safer and lighter too, with less potential to cause harm in case of an accident. It also sticks to a fairly low speed of under 25 miles an hour and slams on the breaks at the first sign of trouble.
What also helps such robot cars is "geofencing" technology which confines them to a limited area surrounding the store.
For now, the cars are still tracked around the neighborhoods by human-driven vehicles, with monitors to make sure nothing goes haywire. But these "chase cars" should be phased out eventually, an important milestone in the evolution of your robot pizza drivers.
Check out how Nuro's vehicles work:
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