The Moral Consequences of Economic Growth

There’s a free excerpt of this 2006 book posted here. Basically, Benjamin Friedman argues that there is a moral argument to strive for as much economic growth as possible. Not only does it increase material wellbeing, it improves health, adds years to people’s lives, and allows people to have more leisure time. He also believes that it tends to support development of peace, tolerance, and stable, democratic institutions over time.

The value of a rising standard of living lies not just in the concrete improvements it brings to how individuals live but in how it shapes the social, political and, ultimately, the moral character of a people.

Economic growth—meaning a rising standard of living for the clear majority of citizens—more often than not fosters greater opportunity, tolerance of diversity,
social mobility, commitment to fairness, and dedication to democracy. Ever since the Enlightenment, Western thinking has regarded each of these tendencies positively, and in explicitly moral terms.

This is a different definition than just increasing GDP, which makes no implicit moral judgment about equity or fairness. If we define economic growth as growing a more equal (or at least, truly equal opportunity), just, sustainable society, then no rational person will have any objection to it. But I don’t think that is the most common definition in daily use today.