A New Economic Model: One That Honors Human Potential

“What We Measure Is What We Serve”

Introduction

At the heart of every society lies a simple but powerful truth: What we measure becomes what we value. And what we value shapes the very structure of our lives.

For over a century, the predominant measure we have used to describe the state and health of our economy – and derivatively, the state of our lives – has been Gross Domestic Product (GDP). 

What is GDP?

GDP is the total monetary value of all goods and services produced within a country over a specific time period—usually measured quarterly or annually.  In simpler terms, GDP is intended to capture the size and activity level of a country’s economy. The higher the GDP, the more economic activity is happening. It includes everything from manufacturing and construction to retail, services, and government spending.

Why Was GDP Created?

GDP was developed in the 1930s, during the Great Depression, by economist Simon Kuznets, who presented it to the U.S. Congress in 1934. The goal was to create a way to quantify the economic performance of the country, track recovery, and guide public policy.

In 1944, GDP became the global standard after the Bretton Woods Conference, where world leaders sought a unified way to compare economies and coordinate post-war rebuilding.

Why Is It Considered Important?

GDP quickly became a default measure for economic “health” because:

• It’s relatively easy to calculate and compare across countries.

• It gives governments and central banks a benchmark to set policies.

• It offers a snapshot of economic momentum: if GDP is rising, the economy is said to be “growing.”

  
  

But this convenience has also made GDP overly dominant in how we define national success.

GDP and the Idea of Recession

A country is commonly said to be in a recession if it experiences two consecutive quarters of negative GDP growth.

This definition shapes everything from:

• Media headlines ("Recession fears grow...")

• Government responses (stimulus packages, interest rate cuts)

• Investor behavior (market sell-offs, tightening credit)

  
  

The Flaws in an Economic Model Based on GDP

Said simply, GDP acts like an emotional barometer for entire economies—even though it only measures one dimension of reality:

• It doesn’t measure well-being or quality of life.

• It doesn’t track inequality—a rise in GDP could mostly benefit the top 1%.

• It ignores unpaid labor (like parenting or caregiving).

• It doesn’t reflect ecological damage or resource depletion.

• It treats all spending as equal—$1 spent on healing and $1 spent on pollution cleanup both “raise” GDP.

  
  

GDP increases when we produce more—regardless of whether what we’re producing is meaningful, sustainable, or even healthy. It rises with pollution cleanups, mass incarceration, disaster rebuilding, and the sale of disposable goods, which only go to pollute our ocean, poison our bodies, and wreak havoc on the environment.

In short: we have been measuring growth, not goodness.

This is not simply an accounting error. It is a fundamental misalignment between what we count and what truly counts.

When an economy is measured solely by how much it produces, it begins to serve growth for its own sake—even when that growth brings harm. Forests can be razed, junk food mass-produced, surveillance technology expanded, and each will raise the GDP. But none of these guarantee—or even support—human flourishing.

As the old saying goes: "What gets measured, gets managed." When we measure production, we optimize for production. When we measure consumption, we optimize for consumption. It’s no surprise, then, that a system built on these metrics increasingly produces overconsumption, exploitation, and existential emptiness.

A Turning Point in History

We now stand at the edge of an unprecedented transformation. New technologies—especially artificial intelligence, automation, and sustainable energy—are reshaping what labor means, how wealth is created, and who has access to it. At the same time, ecological pressures, mental health crises, and cultural fragmentation are revealing the limits of our current economic logic.

In such a moment, the question is no longer whether change is coming. The question is: will we guide it consciously or will we continue living by default in an era where things are shifting so dramatically under our feet, we are in danger of being swallowed up by the very stuff we are so heavily overemphasizing by our measurements?

We Can No Longer Afford to Value Quantity Over Quality

The primary reason GDP is so flawed is that it doesn’t account for what truly matters.

It goes without saying that humans are multidimensional.  Living in a way that gives our lives meaning fundamentally does not depend on how much “stuff” we have.  What matters is whether we have the conditions to thrive in a way that allows us to reach our own unique potentials.  To achieve this, we cannot separate our economic paradigm from psychological truisms.

Instead of simply building an economy on endless and unsustainable growth, the following truisms should define the foundation of an economy, one built through conscious development, both personal and collective:

1. Value should be Measured by Human Flourishing, Not Production Volume

Goods and services are only meaningful insofar as they contribute to human development, well-being, and connection—not just GDP or profit.

2. Basic Needs Are Non-Negotiable

Food, shelter, healthcare, and education are rights, not privileges. An ethical economy ensures these needs are sustainably met for every citizen before pursuing luxury or excess.

3. Demand Must Be Rooted in Wisdom, Not Manipulation

A free market must be balanced with cultural and psychological maturity. Advertising that exploits subconscious drives for status, pleasure, or conformity is a form of economic distortion.

4. Wealth Circulation, Not Accumulation

Money must be treated like blood in a body—it needs to flow. Hoarding wealth while others suffer is not just unjust; it is systemic disease.

5. Purposeful Work Over Profitable Work

Labor should be directed toward work that fulfills psychological, social, and spiritual needs—not just what maximizes profit margins or productivity.

6. Ecological Harmony Is Non-Negotiable

No economic activity is ethical if it externalizes harm to the Earth. Natural systems must be treated as sacred partners, not as expendable resources.

7. Education for Actualization, Not Exploitation

From an early age, education must prioritize the development of self-knowledge, discernment, empathy, creativity, and spiritual insight—not just job-readiness.

8. Progress Is Measured by Meaning, Not Consumption

More is not better. Progress is the expansion of consciousness, the deepening of community, the refinement of beauty, and the lifting of suffering.

A New Paradigm of Measurement is Needed

Because we focus on what we measure, a new measurement framework should replace the concept of GDP as the metric for national and societal progress.

We should call it “The Human Actualization Quotient (HAQ)” in reference to Abraham Maslow and his famous Hierarchy of Needs

Rather than measuring the volume of economic activity, HAQ should seek to evaluate how well a society supports the full development and flourishing of its people and the health of its environment.

The metrics HAQ should measure:

• The sustainable fulfillment of basic needs (food, shelter, healthcare)

• Emotional and psychological well-being

• Education for curiosity, self-knowledge, and critical thinking

• Meaningful work and authentic contribution

• Deep personal relationships and communal trust

• Ecological reciprocity and planetary stewardship

• Creative and spiritual expression

• Equitable wealth circulation

• Protection from psychological manipulation

• Intergenerational opportunity and resilience

  
  

These are not luxuries. They are the foundation of a truly civilized society.

Core Principles of an Economy Based on Self Actualization

A self-actualization-based economic system should be guided by the following principles:

1. Human flourishing, not raw output, is the true measure of progress.

2. Basic needs must be secured for all, unconditionally.

3. Market demand must be shaped by wisdom, not by engineered desire.

4. Wealth must circulate to nourish the whole, not pool in isolated excess.

5. Labor should be aligned with purpose and human dignity.

6. The natural world must be treated as a living partner, not an object of exploitation.

7. Education must cultivate the whole person, not just produce economic units.

8. Progress must be measured by meaning, not accumulation.

   
   

An Invitation

This is not a partisan platform or a utopian fantasy. It is a call to realign economic systems to measure enduring human values to determine its success—many of which are already intuitively understood by people around the world.

We have the tools: technology, energy, information, and insight. What we need now is a new compass—a way to orient our decisions toward wholeness, resilience, and wisdom.

If this vision resonates with you, please share it. Begin conversations. Ask new questions. Help others imagine what becomes possible when we shift the purpose of our economy from endless growth to genuine flourishing.

The systems we build next will shape the lives of generations to come. Let us build them with intention. Let us measure what truly matters. Let us serve what is sacred.