Economic growth: happiness versus growth

Should a nation pursue economic growth? As far as economists are concerned, there is only one answer to this, perhaps. A Buddhist critique written by Schumacher entitled Small Is Beautiful makes a strong case that material wealth, mass production, increased consumption, economic size all do not make people happy. A recent Buddhist critique puts forth the Gross National Happiness as a replacement for the GDP. This chapter clarifies the concept of economic growth as defined by economists, especially the concept of the Gross Domestic Product (GDP). The GDP captures not only material wealth but also many other activities such as leisure activities, nature activities, spiritual and religious activities. A Green GDP measures the negative consequences of economic growth such as pollution. This chapter explains that although a happiness index is meaningful in some situations, the modified GDP provides a far better indicator of economic success and growth.