There is a lot of talk about the need for economic growth to pay for vital services like health, social care, education and transport.
It is a case of increasing the size of the economy so that these things can be afforded. Or is it?
The big problem in society today is inequality. There can be growth created, but at present, the spoils of such success will flow to the few very rich people in society.
That is why in a country like America, which had a buoyant economy, with three per cent growth, under the previous Biden administration, the majority of people did not feel the benefits.
The cost-of-living crisis hit hard, with the mass of people feeling worse off. They did not get the benefit.
The result: Donald Trump was returned as president, promising to make America great again.
Inequality needs to be addressed.
The present Labour government has taken some steps to tackle inequality, for example, raising the minimum wage and improving workers' labour rights.
But, there has been no effort to make those who have the most pay more tax.
In the 1970s, tax rates on the rich were much higher. The gap between rich and poor was narrower, and people were happier.
The polarisation of wealth with a flow from everyone else to the uber-rich has been ongoing since 1980.
Since 1995, the top 1% have captured 20 times more of global wealth than the bottom 50%.
If the government needs more funds for basic services, tax the rich, don't go for the poorest and most vulnerable in society.
The cry goes up that the rich will all leave the country, but this is largely a myth. Some may go, but if they don't want to contribute to the common good, is that a bad thing?
There are, in fact, plenty of rich people who want to pay more. Patriotic Millionaires UK are one such group. They can see the unsustainability of the present system - Let them pay more.
Universal basic income is another thing that would help reduce inequality. If AI has the impact predicted, then a form of universal basic income will become obligatory to keep the economy functioning.
So, yes, sustainable growth is needed, but the fruits must be spread more evenly.
A more equal society is a happier and better-functioning society for everyone, including the very rich.
- Paul Donovan is Labour councillor for Wanstead Village ward, Redbridge Council and a blogger (paulfdonovan.blogspot.com).
