Economic Change and Wellbeing: The True Cost of Creative Destruction and Globalization

Technological progress and globalization have generated indisputable benefits, but also costs, such as growing economic inequality, economic fluctuations, and financial instability. This book argues that the positive consequences of economic change and globalization may not compensate for the negatives, as psychological losses are felt more strongly than gains and the costs are unequally distributed. The authors develop a comprehensive framework in which the socio-psychological context and educational level of a community determine the most suitable policies for the short and long run. The book is valuable for economists, other social scientists, and general readers.

Format: Paperback / softback
Length: 134 pages
Publication date: 31 May 2023
Publisher: Taylor & Francis Ltd

Technological progress and globalization have brought about undeniable benefits, yet they have also incurred significant costs, including escalating economic inequality, economic fluctuations, and financial instability. Traditional economic theories have often viewed these costs as temporary, evenly distributed, and outweighed by the rewards of economic expansion phases. In this insightful book, primarily focused on the labor market, the authors argue that the major expenses associated with the intensified process of creative destruction have been overlooked, leading to an overestimation of the net impact of economic growth on subjective well-being. The book contends that the positive outcomes of economic change and globalization may not outweigh the negatives due to the heightened perception of psychological losses compared to gains (a phenomenon known as loss aversion) and the unequal distribution of costs, which disproportionately impact individuals with lower incomes. Consequently, this results in a overall decline in well-being, necessitating the implementation of appropriate policies to enable more people to reap the benefits of technological progress without incurring the associated costs.

The authors develop a comprehensive framework that takes into account the socio-psychological context and educational level of a community to determine the most suitable policies for both the short and long term. This book makes an invaluable contribution to the literature on economic growth and development, labor economics, the economics of well-being, and the applications of behavioral economics. It is of interest to economists and other social scientists, as well as general readers, as the analysis is presented in a straightforward and accessible manner. University teachers can also utilize the book as a valuable resource for course material.

Weight: 453g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032061979