I've never understood that argument that somehow the economy is separate from those of us who live in it. If Americans decided to spend more time with their kids or do more volunteering and spent less time in the paid workforce, we'd be better off. The economy is what we want it to be to a large extent. And if Americans decide it, as to some extent we have to work less and have a smaller economy than we otherwise would, that'd be just fine.
Author Gregg Easterbrook talks about the ideas in his latest book, The Progress Paradox: How Life Gets Better While People Feel Worse. How has life changed in America over the last century? Is the average person getting ahead or are the rich taking all the gains? Easterbrook argues that life is better for the average American in almost every dimension. The paradox is that despite those gains, we don't seem much happier.