There’s a saying, money makes the world go around, and given that we live in a mostly capitalistic world, GDP growth and economy are the markers of success for countries. While yes, a better economy can result in a higher standard of living for people, GDP is neither a holistic nor a sustainable or even an equal marker as it can’t take into account caregiving work, the work of homemakers, and the economic importance of community and well-being. Plus, capitalistic systems often end up being linear economies which ignore that ecological stability is necessary for economies to have resources to function. It can also lead to a rise in thinking technology can fully replace ecology, which is at best a distant dream, and at worst a recipe for climate disaster. The latter seems to be turning more and more real with each passing day.
Lessons from the country with the largest economy in the world
According to many sources, USA is the largest economy in the While, USA, like many countries that are called developed aim to decouple emissions from growth and insist that economic growth can happen with green capitalism and clean energy at the same rate as it is right now, there’s a group of people asking for reduction in consumption, phasing out of fossil fuels, and a focus on community. This is the degrowth movement which shifts the focus from chasing profits alone to chasing well-being.
To see how valid these demands are, we thought to take a look at the largest economy in the world: The United Nations of America and see where it stands on ecological and social welfare.
The State of the United States
US ranked #17 in economic sustainability according to the SGI or Sustainability Goals Indicator. The previous administration sought to improve circular economy initiatives, and move towards a decarbonised energy system which led to this rating. The rating also mentioned that the US has an adaptive labour market but that the states almost always shape their own labour market laws. Yet, despite diverse taxation, social safety nets remain sparse in the United States of America. For these reasons alongside a drop in GDP, Sustainability News ranks this country as the 9th most sustainable economy, despite the people in USA consuming enough that if everyone lived like an average American we would need five Earths approximately to sustain humanity. And this is with cleaner technology than a few generations ago. Plus, in 2024 USA’s biggest environmental concern was polluted water!
Thus, we can see that while development and infrastructure is great, GDP cannot account for everything, whether it grows or falls- despite that being important obviously. If the country with the largest economy struggles with social welfare and is facing pollution issues (as reported in 2023) alongside unaffordable healthcare, and inflation then clearly just a large economy isn’t enough. Maybe it is helping protect the people against the worst impacts of these problems. Maybe not.
So which country should we look at?
Regardless, the point remains that, just having a large economy isn’t enough, if it doesn’t serve the people. Instead, Sustainability News sees New Zealand as the economic, social, and environmental champion overall, even if the report says NZ is ranked second in social stability.
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Whether a place and its people need degrowth or a circular economy or more social welfare is a matter of policy, best left to the experts and the demands of the population. Yet, as a country which is itself now one of the largest economies in the world, India can look at the USA and see what else is required alongside a large economy and high GDP to be a nation whose economy is helping its citizens. Perhaps then we can develop in a manner where the nation’s economic growth also means a better environment fostering healthier happier people.
