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The Economics of Enough: How to Run the Economy as If the Future Matters
Why our economy is cheating the future―and what we can do about it
The world's leading economies are facing not just one but many crises. The financial meltdown may not be over, climate change threatens major global disruption, economic inequality has reached extremes not seen for a century, and government and business are widely distrusted. At the same time, many people regret the consumerism and social corrosion of modern life. What these crises have in common, Diane Coyle argues, is a reckless disregard for the future―especially in the way the economy is run. How can we achieve the financial growth we need today without sacrificing a decent future for our children, our societies, and our planet? How can we realize what Coyle calls "the Economics of Enough"?
Running the economy for tomorrow as well as today will require a wide range of policy changes. The top priority must be ensuring that we get a true picture of long-term economic prospects, with the development of official statistics on national wealth in its broadest sense, including natural and human resources. Saving and investment will need to be encouraged over current consumption. Above all, governments will need to engage citizens in a process of debate about the difficult choices that lie ahead and rebuild a shared commitment to the future of our societies.
Creating a sustainable economy―having enough to be happy without cheating the future―won't be easy. But The Economics of Enough starts a profoundly important conversation about how we can begin―and the first steps we need to take.
The world's leading economies are facing not just one but many crises. The financial meltdown may not be over, climate change threatens major global disruption, economic inequality has reached extremes not seen for a century, and government and business are widely distrusted. At the same time, many people regret the consumerism and social corrosion of modern life. What these crises have in common, Diane Coyle argues, is a reckless disregard for the future―especially in the way the economy is run. How can we achieve the financial growth we need today without sacrificing a decent future for our children, our societies, and our planet? How can we realize what Coyle calls "the Economics of Enough"?
Running the economy for tomorrow as well as today will require a wide range of policy changes. The top priority must be ensuring that we get a true picture of long-term economic prospects, with the development of official statistics on national wealth in its broadest sense, including natural and human resources. Saving and investment will need to be encouraged over current consumption. Above all, governments will need to engage citizens in a process of debate about the difficult choices that lie ahead and rebuild a shared commitment to the future of our societies.
Creating a sustainable economy―having enough to be happy without cheating the future―won't be easy. But The Economics of Enough starts a profoundly important conversation about how we can begin―and the first steps we need to take.
336 pages, Paperback
First published January 1, 2011
11 people are currently reading
617 people want to read
About the author
Diane Coyle
31 books59 followersDame Diane Coyle is a British economist, academic and writer. Since March 2018, she has been the Bennett Professor of Public Policy at the University of Cambridge, co-directing the Bennett Institute.
Coyle's early career as an economist was followed by a period in journalism including being economics editor at The Independent from 1993 to 2001. She was professor of economics at University of Manchester from 2014 to 2018. She was vice-chair of the BBC Trust from 2011 to 2016 and a member of the UK Competition Commission from 2001 until 2009.
Coyle has written nine books on economics.
Coyle's early career as an economist was followed by a period in journalism including being economics editor at The Independent from 1993 to 2001. She was professor of economics at University of Manchester from 2014 to 2018. She was vice-chair of the BBC Trust from 2011 to 2016 and a member of the UK Competition Commission from 2001 until 2009.
Coyle has written nine books on economics.
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Displaying 1 - 10 of 10 reviews
June 19, 2017
As I am reading this book one chapter at a time, perhaps it is best to write up my notes for each chapter as I read them.
Chapter 1 - Happiness
Much has been made on the economics of happiness. This chapter acts as a counter to a lot of the thinking that has become taken on uncritically. For example, increased GDP may not make us happier, but less GDP certainly makes us unhappier. Other factors come into play as well as material wealth - things like justice and fairness - which we ought to value.
Chapter 2 - Nature
Policy is directed at exploiting the present at the expense of the future. Nowhere is this seen more clearly than in the case of disruptive climate change. We have used nature as a free good. The trouble is that it has been used a bit too freely, so resources, both mineral and climatic, are set to become scarce.
Chapter 3 - Posterity
The key theme in this chapter is that we have issued a massive IOU to future generations. This is in terms of financial debt (money spent currently that has to be repaid in the future) and in terms of social debt (unfunded promises for future levels of consumption). At some point, we will be asked to pay the bill. When we are, we will be unable to cover the tab.
Chapter 4 - Fairness
Does inequality matter? Does it have an adverse effect on economic growth? The answer to both of these questions seems to be 'yes'. An unequal society that is the product of an inegalitarian economy is less able to sustain itself in the longer term. The pressure for change will become too great. This is the case against a return to business-as-usual after the recession.
Chapter 5 - Trust
This chapter examines social capital and the need for it to run a modern economy (high inter-linkages, great physical distances, high levels of intangibles). It also considers how the ICT revolution has changed the nature of social capital, and suggests that we are in a period where we are transitioning from one paradigm of social capital to another. That we haven't made the transition is suggested by current social tensions and lack of trust in public institutions.
Chapter 6 - Measurement
This may seem to be a funny thing to consider in the arena of enoughness, but it does actually make sense. The main point is that we focus on what we can measure, and well-being has been distilled into a single concept - GDP. This is a terrible indicator because it doesn't measure well the intangible and it mixes price with value. It also measures a flow (income) whereas we are more concerned with a stick (wealth, well-being, happiness, and so on). An important part of enoughness is being able to quantify these abstractions.
Chapter 7 - Value
How do we choose, as a society, what we value most? And what is the best way to deliver those choices? This chapter starts by thinking about where value originates, but then goes on to concentrate upon the delivery mechanism - 'free markets' or 'central planning'. In many respects, there are a false dichotomy because most modern economies are a blend of both.
Chapter 8 - Institutions
I have argued elsewhere that our current situation calls for a good deal of institutional reform, some to the point that obsolete institutions are simply over turned. This chapter articulates that argument from a point of practical necessity. It suggests that we are unable to continue on our current trajectory, and that part of the problem is an institutional infrastructure that simply makes matters worse.
Chapter 9 - Manifesto
It is easy to coach from the touchlines. A far harder job is to outline what we would do about it. This chapter lays out the manifesto for change. There is a lot that we can get to grips with, but it seems to me that the most fundamental point is that we needs to adjust how we see ourselves, the space we occupy in the universe, and how we relate to each other. If we don't, then, sooner or later, our busted flush will be exposed.
I quite liked the book and will probably go on to write a more formal review of the book.
Chapter 1 - Happiness
Much has been made on the economics of happiness. This chapter acts as a counter to a lot of the thinking that has become taken on uncritically. For example, increased GDP may not make us happier, but less GDP certainly makes us unhappier. Other factors come into play as well as material wealth - things like justice and fairness - which we ought to value.
Chapter 2 - Nature
Policy is directed at exploiting the present at the expense of the future. Nowhere is this seen more clearly than in the case of disruptive climate change. We have used nature as a free good. The trouble is that it has been used a bit too freely, so resources, both mineral and climatic, are set to become scarce.
Chapter 3 - Posterity
The key theme in this chapter is that we have issued a massive IOU to future generations. This is in terms of financial debt (money spent currently that has to be repaid in the future) and in terms of social debt (unfunded promises for future levels of consumption). At some point, we will be asked to pay the bill. When we are, we will be unable to cover the tab.
Chapter 4 - Fairness
Does inequality matter? Does it have an adverse effect on economic growth? The answer to both of these questions seems to be 'yes'. An unequal society that is the product of an inegalitarian economy is less able to sustain itself in the longer term. The pressure for change will become too great. This is the case against a return to business-as-usual after the recession.
Chapter 5 - Trust
This chapter examines social capital and the need for it to run a modern economy (high inter-linkages, great physical distances, high levels of intangibles). It also considers how the ICT revolution has changed the nature of social capital, and suggests that we are in a period where we are transitioning from one paradigm of social capital to another. That we haven't made the transition is suggested by current social tensions and lack of trust in public institutions.
Chapter 6 - Measurement
This may seem to be a funny thing to consider in the arena of enoughness, but it does actually make sense. The main point is that we focus on what we can measure, and well-being has been distilled into a single concept - GDP. This is a terrible indicator because it doesn't measure well the intangible and it mixes price with value. It also measures a flow (income) whereas we are more concerned with a stick (wealth, well-being, happiness, and so on). An important part of enoughness is being able to quantify these abstractions.
Chapter 7 - Value
How do we choose, as a society, what we value most? And what is the best way to deliver those choices? This chapter starts by thinking about where value originates, but then goes on to concentrate upon the delivery mechanism - 'free markets' or 'central planning'. In many respects, there are a false dichotomy because most modern economies are a blend of both.
Chapter 8 - Institutions
I have argued elsewhere that our current situation calls for a good deal of institutional reform, some to the point that obsolete institutions are simply over turned. This chapter articulates that argument from a point of practical necessity. It suggests that we are unable to continue on our current trajectory, and that part of the problem is an institutional infrastructure that simply makes matters worse.
Chapter 9 - Manifesto
It is easy to coach from the touchlines. A far harder job is to outline what we would do about it. This chapter lays out the manifesto for change. There is a lot that we can get to grips with, but it seems to me that the most fundamental point is that we needs to adjust how we see ourselves, the space we occupy in the universe, and how we relate to each other. If we don't, then, sooner or later, our busted flush will be exposed.
I quite liked the book and will probably go on to write a more formal review of the book.
December 21, 2011
I thought this a very sensible and solid book. It applies practical economics to some of the huge problems that we face including:
-the threat of climate change;
-the unsustainable growth of public debt, both hidden and acknowledged; and,
- growing inequality.
She deals well with the study of happiness and its link to standard economic measures. Thankfully she gently disposes of the arguments who would throw away GDP.
The author does not, I think, have the ambition of pretending to advance the frontiers of knowledge. But, she draws on key insights from some of the leading practitioners and applies and explains them in clear terms. I like the fact that she is neither apocalyptic on the one hand, nor complacent, on the other. She conveys that real progress can be made incrementally.
She is sharp-tongued on the topic of bankers' pay and obscene bonuses. There is a dubious, but interesting, argument advocating abandonment of bonuses and performance pay at all levels. I was intrigued, but not convinced.
A very worthwhile read.
-the threat of climate change;
-the unsustainable growth of public debt, both hidden and acknowledged; and,
- growing inequality.
She deals well with the study of happiness and its link to standard economic measures. Thankfully she gently disposes of the arguments who would throw away GDP.
The author does not, I think, have the ambition of pretending to advance the frontiers of knowledge. But, she draws on key insights from some of the leading practitioners and applies and explains them in clear terms. I like the fact that she is neither apocalyptic on the one hand, nor complacent, on the other. She conveys that real progress can be made incrementally.
She is sharp-tongued on the topic of bankers' pay and obscene bonuses. There is a dubious, but interesting, argument advocating abandonment of bonuses and performance pay at all levels. I was intrigued, but not convinced.
A very worthwhile read.
April 27, 2013
The author of this book did a good job of conveying the complexity of the problem, and recognizing that each country must come up with solutions that fit their own culture and financial situation. The 10 first steps for governments to take seem well thought-out and reasonable. I also liked that she recognized that neither government nor the market had all the answers and would need to both change. But, I have a few criticisms that make this only a 3-star book:
She spends a lot of time belittling the "no-growth" movement with very little evidence or studies to back up her claims. She repeatedly (too often) states that economic growth is necessary for human happiness, but the examples she gives have to do with poor countries, unemployment, and choice. First, the anti-growth movement recognizes that poor countries still need growth. Second, a goal of maximum employment is not the same as (and in some ways incompatible with) growth-focused policies. Third, there's a lot of evidence that more choices do not make us happier. So, this repeated mantra of growth really didn't work - it seemed to be extremely ideologically based.
The other thing that bothered me about the book was her unsupported claim that businesses were so much better run than government. She (over and over again) stated that government was worse than business in productivity and customer service, but offered absolutely no research to support this. Just conventional wisdom. Even after she stated that public trust in government had no correlation to quality and provision of government services, she continued to use the public mistrust as her only proof that government hadn't evolved with the times as well as private industry has.
Overall, interesting conclusions, but not well supported or expressed.
She spends a lot of time belittling the "no-growth" movement with very little evidence or studies to back up her claims. She repeatedly (too often) states that economic growth is necessary for human happiness, but the examples she gives have to do with poor countries, unemployment, and choice. First, the anti-growth movement recognizes that poor countries still need growth. Second, a goal of maximum employment is not the same as (and in some ways incompatible with) growth-focused policies. Third, there's a lot of evidence that more choices do not make us happier. So, this repeated mantra of growth really didn't work - it seemed to be extremely ideologically based.
The other thing that bothered me about the book was her unsupported claim that businesses were so much better run than government. She (over and over again) stated that government was worse than business in productivity and customer service, but offered absolutely no research to support this. Just conventional wisdom. Even after she stated that public trust in government had no correlation to quality and provision of government services, she continued to use the public mistrust as her only proof that government hadn't evolved with the times as well as private industry has.
Overall, interesting conclusions, but not well supported or expressed.
November 4, 2015
Reading for a class. I hate reading books by people who cannot write. This author is clearly an economist first and a writer second. I can only assume that she likes to hear herself talk by the way she conveys information. This book would be more successful if it got to the point rather than confusing the reader with unorthodox sentence structures. This author uses the comma in place of every other type of punctuation. This was impossible to slog through.
Read
March 6, 2012Nonfiction, economics.
finish-later
January 24, 2015read to page 9, then read most of the conclusion
Copyright 2011
Copyright 2011
February 17, 2020
Book is 10 years old now. Some good points and solutions/ideas, but misses some big points i.e. white supremacy culture and extremely high military budgets.
June 14, 2024
For a book on sustainable economics, I felt it was a sincerely poorly written book.
Many lines were overwritten, lacked detail and failed to drive points. Some chapters such as Posterity were well written but others not so much.
The images were extremely disgusting to me, a book on sustainability I would think wouldn’t take a full page out for a stock image. I really would have enjoyed the book more with more data and visualisation of it rather than useless photos like this.
Many lines were overwritten, lacked detail and failed to drive points. Some chapters such as Posterity were well written but others not so much.
The images were extremely disgusting to me, a book on sustainability I would think wouldn’t take a full page out for a stock image. I really would have enjoyed the book more with more data and visualisation of it rather than useless photos like this.
November 2, 2017
I get why this book is important to read. But it's dense and dry, reads like a textbook.
February 14, 2018
A very insightful overview of looking beyond GDP, but I feel it was overly verbose and could have spent more time going in-depth on alternative ways of measuring enough.
Displaying 1 - 10 of 10 reviews