Prepare developed democracies for long-run economic slowdowns

Matthew Burgess, Amanda R. Carrico, Steven D. Gaines, Alessandro Peri and Steve Vanderheiden
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Amanda R. Carrico: University of Colorado Boulder
Steven D. Gaines: University of California Santa Barbara
Steve Vanderheiden: University of Colorado Boulder

Nature Human Behaviour, 2021, vol. 5, issue 12, 1608-1621

Abstract: Abstract Developed democracies proliferated over the past two centuries during an unprecedented era of economic growth, which may be ending. Macroeconomic forecasts predict slowing growth throughout the twenty-first century for structural reasons such as ageing populations, shifts from goods to services, slowing innovation, and debt. Long-run effects of COVID-19 and climate change could further slow growth. Some sustainability scientists assert that slower growth, stagnation or de-growth is an environmental imperative, especially in developed countries. Whether slow growth is inevitable or planned, we argue that developed democracies should prepare for additional fiscal and social stress, some of which is already apparent. We call for a ‘guided civic revival’, including government and civic efforts aimed at reducing inequality, socially integrating diverse populations and building shared identities, increasing economic opportunity for youth, improving return on investment in taxation and public spending, strengthening formal democratic institutions and investing to improve non-economic drivers of subjective well-being.

Date: 2021
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Citations: View citations in EconPapers (4)

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DOI: 10.1038/s41562-021-01229-y

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