On one side, Keynesians. On the other, “austerians.” The former argue: spend, spend, spend, for the real problem in the economy’s a lack of demand — not enough buying power to create jobs and trade. The latter argue: cut, cut, cut, for the real problem’s a lack of supply — a shortage of financial capital, to fuel ever-growing debt.

We need to go beyond the sterile debate between stimulus and austerity, argues Umair, who also gives a series of policy prescription in the full version of the original article.

Excerpted from Umair Haque:

“Both sides are arguing over the same thing: how to kickstart growth in gross domestic product. Because, in turn, the assumption from both sides is the same: that “growth” is necessary and sufficient for prosperity. In other words, common to both sides is the dogma that the purpose of the economy should be (maximizing) the volume of gross product.

I’d like to propose a third position in this great debate. Call it “prosperianism.” Prosperians believe the economy’s central problem isn’t a lack of demand, or a lack of supply — but a lack of purpose. Prosperianism’s foundation can be summed up in a single sentence: 21st century economies can, should, and must have a higher purpose than product.

Prosperians believe that the real challenge of the 21st century isn’t kickstarting “growth” and churning out more “product” — but reconceiving what is growing, how it grows, and why it grows. The prosperian agenda is redefining prosperity, so it’s more meaningful, authentic, and durable. It’s not about just restarting the same old industrial-age engine of GDP, but building a better one.

Who might be said to be a prosperian? The economist Richard Florida, whose work discusses the central role of creativity in prosperity; the eminent Peter Senge, whose The Necessary Revolution fleshes out a wholer prosperity; John Hagel, whose The Power of Pull explains how to redraw the boundaries of industrial age business as usual; Gary Hamel, whose The Future of Management is an ode to higher purpose; and a raft of visionary CEOs including Timberland’s Jeff Swartz, Interface Carpet’s Ray Anderson, and Nike’s Mark Parker. Not all prosperians agree on exactly what the “right” higher purpose should be, but what they do agree on is the need to move past yesterday’s tired debates about product, and begin having a better one, about purpose.

Without a higher purpose for the economy, the door to creating the industries, companies, jobs — and advantages — of the 21st century will remain closed.”