A recent New York Times article lays out a stark and worrying contradiction: the U.S. economy keeps growing, but life expectancy is down, mental health issues are up, and trust in institutions is collapsing. Growth is supposed to mean progress, but it’s not working that way. Not anymore, at least, and not always.
The issue is that economic growth gets treated as the ultimate goal, with wellbeing as an assumed—or hoped-for—side effect. But if the purpose is really human and ecological wellbeing, as every organization’s vision statement would have us believe, why not focus on them directly? In such a “wellbeing economy”, growth might still take place if it serves direct societal benefits, but no longer at all other costs. This could mean that the unintended consequences of the current economic system, things like rising inequality, burnout, and environmental breakdown, would also be avoided more because they lower wellbeing.
What do people really need?
Economists and social scientists have looked at the question of how to best satisfy human needs for decades. Different frameworks—Nussbaum’s capabilities approach, the New Economics Foundation’s 5 Wellbeing Ways, and Max-Neef’s human needs framework—point to the same basic conclusions:
- Human needs are universal. Everyone needs security, nutritious food, relationships, meaningful work, and a healthy environment to thrive.
- Needs can be met without endless consumption. Wants are unlimited, but needs have clear solutions that don’t require infinite growth, although different options for need satisfaction may vary significantly in ecological impact.
Max-Neef’s framework, for example, includes needs like subsistence, protection, affection, understanding, participation, and identity—none of which depend on increasing GDP. If we look at the economy from the point of view of needs, then GDP can’t be the sole measure of progress.
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The growth trap
The current U.S. economy is built on the idea that more is always better—more production, more consumption, more money changing hands. But the Times article spells out what that leads to:
- Longer work hours without better lives
- A small group accumulates extreme wealth while millions struggle
- Overconsumption—junk food, screen time, stress—harming health and increasing anxiety
Growth in and of itself is not a problem. Especially at lower material footprints, it can improve wellbeing, as it has done for the millions of people in Asia who have been lifted out of poverty over the past few decades. But in the U.S., more GDP growth hasn’t made people happier. In fact, as measured by one GDP alternative called the Genuine Progress Indicator (GPI), created by former World Bank economist Herman Daly, Americans’ wellbeing peaked in the 70s and has been slowly declining.
Inequality: Why ‘average’ metrics mislead
One reason for this conundrum is that GDP obscures inequalities. It measures total economic output, but it doesn’t show who benefits. The economy keeps expanding, yet most wealth goes to the top 10% while wages stagnate, and costs rise for everyone else. Another reason is that GDP leaves out a lot of relevant factors for wellbeing, like a clean environment and a sense of community. That’s why the GPI, which adjusts for social and environmental costs, has been declining: pollution and reduced social cohesion cause declines in the GPI whereas GDP is blind to those issues.
The Times report highlights this gap; despite all this growth, people are sicker and more anxious. A wellbeing economy would address this by, among other things:
- Investing in public goods—healthcare, education, housing, and public transportation—so prosperity is shared
- Rethinking work—including by making livelihoods more secure—so people can work to contribute, not grind to survive
- Measuring success differently—if GDP is up but people are miserable, something’s off
Other ways to measure progress exist, such as the Happy Planet Index, Better Life Index, Human Development Index, and the already mentioned GPI. Maryland has adopted the latter index and other governments are exploring similar shifts. While none of these metrics are perfect in capturing progress, they do a better job in tracking whether the economy improves lives, rather than assuming all growth is good growth.
Social disconnection: The ‘pulling apart’ problem
The Times article also points to growing isolation. People spend more time on screens, less time with friends and family, and feel less connected. However, research consistently shows that social ties are among the strongest predictors of happiness and health. Economic activity should strengthen communities, not leave people burned out and disconnected.
A wellbeing economy would help rebuild by:
- Investing in public spaces—parks, libraries, and community centers where people can gather and engage in dialogues — as well as share tools and books, lowering ecological impacts in the process
- Supporting local economies—because strong communities are built on relationships, not just transactions
- Encouraging work-life balance—knowing that time spent with family, friends, and community is crucial for a flourishing society, even when care work is not counted as economic activity
Health, happiness, and the planet
The U.S. ranks last in life expectancy among wealthy nations. Drug overdoses, chronic illness, and mental health struggles are all rising. Meanwhile, the economy chews through resources at an unsustainable rate, locking us in on a path towards ecological breakdown.
Wellbeing economists understand these environmental and social issues are connected and aim to address them in a systemic way. Economic systems shape both human and environmental health. The crux lies in satisfying needs with the option that has the lowest ecological impact – or even a positive one, as in regenerative products. In practice this means businesses and governments in a wellbeing economy would work for:
- Cleaner air and water—because pollution shortens lives and restoring ecosystems is good business
- Healthier and regenerative food systems—so good nutrition is accessible and affordable, and biodiversity is not destroyed in the process of producing it
- Better mental health support—because having all grown up in a degenerative economic system means that we have a lot of healing to do, individually and collectively
Avoiding disaster is the wrong approach. That is just a consequence of the much more inspiring goal of creating a system where people—and all life—can thrive.
Redefining success
The U.S. has one of the wealthiest economies in history, yet millions feel like they’re barely holding on. The Times report makes one thing clear: growth measured in GDP alone doesn’t always deliver wellbeing.
A wellbeing economy isn’t some idealistic fantasy. It’s a feasible pathway of resetting societal priorities. Instead of treating growth as the goal, it puts human and ecological wellbeing first. Countries moving in this direction—like Finland, Denmark, and New Zealand—rank higher in happiness and life satisfaction, even without the fastest-growing economies. Because if the economy isn’t about improving people’s lives, what’s it for?
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