Reflections 18 July

On my mind this week.

There comes a time when it makes sense to question conventional wisdom, and I think now is such a time. 

We have moved GDP centre stage as the default measure of progress, regarding other measures as sideshows - things to address as long as we don't disturb GDP. We do this even though we recognise that the distribution of that GDP is increasingly skewed towards fewer and fewer people. 

Over 56% of us now live in cities, and if we take economic performance as our benchmark, it is easy to see why. When a town or city's population doubles, the infrastructure cost reduces by 15%, whilst at the same time productivity - measured in salaries, innovation, culture - even the pace at which people walk - increases by 15%. More productivity, less cost - and were off to the races. The dynamics are relatively simple - economies of scale for costs and interaction of people - the productive friction of cafés, shops, restaurants, theatres, and other social activity gives serendipity…