Why politicians chasing economic growth is a lie | Radical Thinking with Aditya Chakrabortty
Source: Guardian Econ ↗ (cross-verified by 3 outlets — full list below)
Rebel economists Karel Williams and Sukhdev Johal appeared on the latest episode of “Radical Thinking with Aditya Chakrabortty” to argue that the political obsession with perpetual economic growth is a “fool’s dream” that will not improve ordinary lives. In their discussion they outlined what a post‑growth future could look like for towns and suburbs, using a 2016 report from south Wales as a concrete illustration of current conditions. Their critique is framed within the work of the Foundational Economy Collective, through which they disseminate their research in freely available working papers rather than traditional academic channels.
The duo’s analysis links the growth myth to broader structural problems in the United Kingdom, highlighting rising inequality and economic stagnation. They point to a separate working paper on the cost‑of‑living crisis as evidence of how growth‑centric policies have failed to address everyday hardship. More recently, Williams and Johal have turned their attention to the deteriorating water infrastructure in England and Wales, detailed in their book “Murky Water: Challenging an Unsustainable System,” which they present as another symptom of an unsustainable growth paradigm.
By publishing their findings outside conventional academic publishing, Williams and Johal aim to reach a wider public and influence policy debates. Their arguments suggest that abandoning the growth imperative could reshape local economies and public services, especially in regions like south Wales that already experience the fallout of stagnant development. The conversation on “Radical Thinking” thus positions their work as a call for rethinking how prosperity is measured and pursued across the UK.
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶Trade ties may tighten or loosen as the numbers sink in.
- ▶Central banks abroad could recalibrate their own outlook off the back of this.
🏙️Local Economylow impact
What this means for you
- ▶Household bills may drift in step with the bigger economic picture.
- ▶Everyday costs tend to catch up with economic news a few weeks late.
🏦Rates & Bankslow impact
What this means for you
- ▶Financial markets sometimes overreact to rate speculation before banks even respond.
- ▶Interest rates and mortgage bills are unlikely to jump straight away from this alone.
❤️Healthmedium impact
What this means for you
- ▶The strain, if any, tends to show up quietly in everyday life.
- ▶Being kind to yourself matters just as much as staying informed.
💷Wealthmedium impact
What this means for you
- ▶Checking in on your finances now and then is good practice regardless of headlines.
- ▶Any hit to your money is more likely a ripple than a wave.
🏠Housinglow impact
What this means for you
- ▶Housing chains involving multiple buyers can be sensitive to any wider wobble.
- ▶House prices and rents are unlikely to shift the moment this news breaks.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.