Raj Patel. The Value of Nothing. (2009) Modern economic theory ascribes a value of $0 to externals. For example, treating effluent before discharging it into the nearest watercourse costs money, but untreated effluent costs nothing. More precisely, leaving the purification of effluent to natural processes costs nothing.
Since we believe the aim of our economy is to maximise profit, we believe that the aim of our producers is to minimise cost, which in turn means to maximise externals. It also means minimising the provision of social goods, which cost money. Thus the drive to minimise taxes, which pay not only for necessities but also for amenities. Finally, the drive to maximise profits spurs the quest to privatise public goods such as education and parks, and to oppose the transfer of necessary services such as healthcare from private to public organisations.
Patel’s book is an extended discussion on the value of those external processes that suppsedly cost nothing. Hence the title. He begins by estimating the full cost of those zero-cost externals. An example is the $3.95 hamburger whose true cost is about $200.
Like many others who have meditated on the costs of using nature to do our dirty work, he concludes that these externals provide services of value, if only the monetary cost avoided by using them. From that starting point, he widens his discussion. The book is an argument for an economy that recognises that ecosystems are fundamental, and instead of treating them as zero-cost, treats them as the essential and hence most valuable part of the economy. He understands that any change to our economic systems entails changes to our politics, and discusses those as well, adducing examples of successful local, communal control.
Well, that’s a simplification of this book, which touches on everything that’s implied by the question What is the economy for?
Recommended. ****
No comments:
Post a Comment