Time to think beyond the economy – is GDP the right target?

Policy should focus on wellbeing, opportunity and sustainability.

This week David Cameron launched the Big Society bank and sparked a new round of debate on whether "money makes the world go round" or "the best things in life are free". The Big Society is seen by some as a political cover story for cuts to public services but the idea behind it questions whether there is more to society than just the bottom line? Whether the pursuit of happiness is about more than money? Whether doing you bit, gives your life its meaning, rather than the job you do or the things your own?

Given Britain’s gloomy economic climate, the worst unemployment since 1995 and further cuts to public spending in the pipeline, our ‘age of austerity’ seems all encompassing. But back in 1968, Robert Kennedy famously questions whether GDP was the right measure of a healthy economy and of a good society:

The Gross National Product does not allow for the health of our children, the quality of their education, or the joy of their play. It does not include the beauty of our poetry or the strength of our marriages; the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage; neither our wisdom nor our learning; neither our compassion nor our devotion to our country; it measures everything, in short, except that which makes life worthwhile.

More than forty years on, politicians are still asking those questions.  A new report published by IPPR today report suggests policy should focus directly on wellbeing and range of the opportunities that people have. It concludes that every effort to rethink economic policy should be motivated by a consideration not only of "what works" but also of "to what ends".

Clearly there are reasons why GDP has remained for so long the primary measure of economic success. Governments have long taken the view that by promoting GDP growth they help a majority of the population achieve better lives. Historically a strong correlation existed between GDP, disposable income and employment. This provided greater access to material wealth; more desirable cars, houses, clothes, and the latest household and personal gadgets. But despite the advances brought about by GDP growth, there is a growing consensus among politicians that GDP on its own is no longer sufficient and our wellbeing does not just come from income, but from a wide range of sources.

On the other side of the pond, significant headway in measuring national wellbeing has been made in Canada with the Canadian Index of Wellbeing. It is an attempt to capture the quality of life experienced by Canadians. Here in the UK, the ONS launched a consultation exercise to find out what really matters to people from the people themselves. This found that family, friends, health, financial security, equality and fairness are fundamental in determining wellbeing. These initiatives should be encouraged and continued so we can identify what matters to people and how best we can directly support these areas.

By targeting wellbeing and opportunity we speak to the wider concerns of the population. We ask how people are doing before we ask how the economy doing? We recognise that there is "life beyond the bottom line" and that worthwhile lives extend beyond what we earn and consume. The big question that remains, is how to conclude a political consensus around wellbeing, opportunity and sustainability?

Amna Silim is a Researcher at IPPR

David Cameron launches The Big Society Capital fund at The London Stock Exchange. Photograph: Getty Images.
Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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