Book

Human-Centred Economics: The Living Standards of Nations

This book examines the chronic underperformance of economies with respect to inclusion, sustainability and human and systemic resilience. It proposes a reformulation of macroeconomic theory and policy to explicitly internalize the role of policies and institutions that enable them. Correcting the imbalance of emphasis in modern economic theory and policy between markets and institutions, production and distribution, and national income and household living standards is the single most important step required to transcend 20th century trickle-down “neoliberalism” and replace it with a more human-centred model of economic progress in the 21st century.

Outlet: Palgrave Macmillan, ILO

Topics: , , ,

Author: Richard Samans

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The book proposes to reformulate the “source code” of capitalism by integrating the principal institutional dimensions of the social contract into the heart of macroeconomic theory and presenting extensive corresponding reforms of domestic and international economic policy to refocus them on the median living standards, rather than primarily aggregate wealth or GDP, of nations. A general rise in the standard of living is the bottom-line measure of national economic performance, and it depends on the strength of both markets of exchange and institutions in such areas as labour and social protection, financial and corporate governance, competition and rents, anti-corruption, taxation, infrastructure and basic necessities, environmental protection, education and skilling, etc. Extensive comparative data are presented demonstrating that countries at every level of economic development have ample policy space to narrow their social “welfare gaps” – their underperformance on these and other key aspects of household living standards relative to the frontier of leading outcomes and policy practice in peer countries, and that doing so can often also narrow their output gap or underperformance on growth.