Economic Possibilities for Our Grandchildren, Essay Example

It is clear that the current economic downturn has created popular anger and resentment against the banks and financial institutions.  The level of greed from brokers taking large bonuses, the scandals on  the derivative markets etc have all  been viewed as pursuit of individual wealth at the expense of the society they serve.  It was John Maynard Keynes that also addressed this in 1930 in his essay ” economic possibilities for our grandchildren. ”  (Sidelsky).  Keynes  predicted that by 2030 growth in the developed world would have  halted because people will have enough income to ” lead the good life.”  (Sidelsky)  and as such, the working week will fall to a three day — 15 hour week.  Keynes said it would be “like lilies of the field, who toil not, neither do they spin.”  (Sidelsky).  A brilliant prediction for the time.  He based his thoughts on a number of key assumptions:

• there would be a 2% increase in capital.
• 1% increase in productivity.
• Standards of living rise times eight on average.
• Stable population.
• Estimation that GDP of $66,000 would be sufficient income for people to type that their attention to other needs.  An interesting concept, but the satisfaction of Maslow’s hierarchy of needs.

In 2007 the prediction of Keynes  has virtually been realized with the exception of two key points.  [1] no major wars.  [2] no population growth.  Teams felt that there was a social responsibility for the wealthy to help the poorer members of society.  Keynes  also said that “enough will in fact not be enough”  (Sidelsky).  A reference to the good life, and the accumulation of wealth not making life worth living.  e.g., you lose your dreams and ambitions and the ability to wear them strive for something better, in essence a loss of a sense of purpose.  This often happens to wealthy businessman, after taking retirement from a very active business life.  It is the loss of self-esteem, and the ability to recognize one’s place in society, after making a significant contribution  for a  large number of years.

Works Cited

Sidelsky, Robert. Guurdian. 23 11 2009. 26 7 2010 <http://educationforum.ipbhost.com/index.php?showtopic=15043>.