The Value of Everything

Economics is one of those subjects that I’ve only ever seen from the sidelines. When I was at school, I remember seeing friends drawing simple demand curve graphs. It looked pretty straightforward, though, of course, anything you don’t understand very well often does.

Over the years, “life” touches on the concepts fairly often. Whether it’s what’s going on at work or things the government is doing (or not doing), you can’t get far without hearing the word.

Probably what I need is an “introduction to economics” book. Instead, I read Mariana Mazzucato’s “The Value of Everything,” which talks about the concept of “value” which isn’t quite the same thing but was fascinating nevertheless.

For example, reading about forecasts and GDP1, you often see hints, or explicit mention, that government is “unproductive.” Certainly, the idea that private enterprise is more efficient than the government is thoroughly entrenched. What I hadn’t really considered was how “value” and GDP is defined. And, it turns out, that what the government does is by definition unproductive.

This is a narrow definition of “productive” that then makes its way out into society by people who don’t know that it’s an economics term. Much as the word “theory” is used to discredit “the theory of evolution” by people who think “theory” just means a hunch or guess.

Having defined value, Mazzucato moves on to discuss the implications, from the contribution to GDP that banking, pharmaceutical and technology companies make to the effectiveness of government spending and austerity.

It’s not the most exciting of subjects, I grant you, and it’s written fairly flat and academically, but there’s a lot of good stuff in there. A few times I found myself disagreeing, or thinking a statement was overly generalised, only to find that she covered that in a subsequent section. This was a little frustrating on one hand but on the other kept me reading to the end.

Overall, it’s easy to recommend if you’re conflicted on the role of government and big business. As ever, there are no easy answers but it clarified a few things and made me think and about others.

  1. Yeah, maybe I should get out more. ↩︎

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