The Alternative: How to Build a Just Economy

by Nick Romeo

Winners Take All meets Nickel and Dimed in this provocative debunking of accepted wisdom, providing the pathway to a sustainable, survivable economy.

Confronted by the terrifying trends of the early twenty-first century — widening inequality, environmental destruction, and the immiseration of millions of workers around the world — many economists and business leaders still preach dogmas that lack evidence and create political catastrophe: Private markets are always more efficient than public ones; investment capital flows efficiently to necessary projects; massive inequality is the unavoidable side effect of economic growth; people are selfish and will only behave well with the right incentives.

But a growing number of people — academic economists, business owners, policy entrepreneurs, and ordinary people — are rejecting these myths and reshaping economies around the world to reflect ethical and social values. Though they differ in approach, all share a vision of the economy as a place of moral action and accountability. Journalist Nick Romeo has spent years covering the world’s most innovative economic and policy ideas for The New Yorker. Romeo takes us on an extraordinary journey through the unforgettable stories and successes of people working to build economies that are more equal, just, and livable. Combining original, in-depth reporting with expert analysis, Romeo explores:

• The successful business owners organizing their companies as purpose trusts (as Patagonia recently did) to fulfill a higher mission, such as sharing profits with workers or protecting the environment.

• The growing deployment of new models by venture capital funds to promote wealth creation for the poorest Americans and address climate change.

• How Oslo’s climate budgeting program is achieving the emission reduction targets the rest of the world continues to miss, creating a model that will soon be emulated by governments around the world.

• How Portugal strengths democratic culture by letting citizens make crucial budget decisions.

• The way worker ownership and cooperatives foster innovation, share wealth, and improve the quality of jobs, offering an increasingly popular model superior to the traditional corporation.

• The public-sector marketplace that offers decent work and real protections to gig workers in California.

• The job guarantee program in southern Austria that offers high-quality meaningful jobs to every citizen.

Many books have exposed what’s not working in our current system. Romeo reveals something even more essential: the structure of a system that could actually work for everyone. Margaret Thatcher was wrong: there is an alternative. This is what it looks like.

Genres: Nonfiction, Economics, Politics, Business, Audiobook, Justice, Social Science

325 pages, Kindle Edition

First published January 16, 2024

About the author

Nick Romeo covers policy and ideas for The New Yorker and teaches in the Graduate School of Journalism at the University of California, Berkeley. He has also written for The New York Times, The Washington Post, National Geographic, Rolling Stone, The Atlantic, The MIT Technology Review, and many other venues.

Reviews

[Des · Rating 5 out of 5]

Should be required reading for Economists and politicians. But non-Economists will love it for the Tolstoy and the very real alternative ideas. The dismal science lost its way in the headlong pursuit of becoming a science like physics. Nick Romeo puts the 'humanity' back at the heart of economics and shows that there are real alternatives. Highly recommended. Special thank you to John Murray Press and NetGalley for a no obligation advance review copy.

[Alan M. de León · Rating 4 out of 5]

A must-read for all, offering a vision for the 21st century and proven approaches to addressing three of the defining issues of our time: inequality, inflation, and climate change.

It’s instantly one of the best introductory materials to core concepts in heterodox economics, such as true pricing, purpose trusts, cooperatives, job guarantees, public gig markets, climate and participatory budgeting, and more. But this book also offers significant value to those familiar with these topics, using evidence, reporting, and storytelling to justify and tie all these different models and threads together as part of a single socioeconomic system in a coherent and unique way.

One of the lasting lessons is that the possibility of a more just economy is not out of reach: “The strongest evidence that alternative arrangements are viable is to show that they already exist.” This book shows just that.

[Kaycee Rose · Rating 5 out of 5]

This was an eye-opening read for me. I don't have a background in economics. From my uneducated view I just have this vague feeling that capitalism isn't really all that great but also have no idea what, if anything, is better. This book isn't an explanation or comparison of different economic types, but I learned so much more than that anyway. The real-life examples of how things can be better are truly inspiring, and they don't require a revolution to realize. I think this book should be read by every politician, business owner, CEO, and John Q Public that gives a d--n.

[Daniel · Rating 5 out of 5]

The alternative
Currently, winners take all and lots of workers are not surviving on low non-living wages. No need for Revolution or Communism. Actual more equitable ways of capitalism has been done successfully and we should spread the message.

1. Co ops are the way to go: workers are given option to buy shares free one year. They can vote for important decisions, and usually top pay to lowest pay ratio about 6 to 8.
2. Mondragón is an 80,000 employee co op in Spain that is successful
3. Problems are increased employee dissatisfaction (lazy coworkers), and lower pay
4. When owners sell, they can sell to Perpetual Purpose Trust so the purpose of the company is preserved
5. Participative budgeting in Europe set aside money for residents to propose projects which are then voted for to decide on funding
6. Job guarantee program in Austria shows people actually want to work and not just take handouts
7. California government gig platform matches workers (many) with jobs (few)

Addendum 1 Oct 2024: just read that Singapore is going to try participatory budgeting!

[Harry Wahl · Rating 2 out of 5]

Some interesting economic ideas but without an overarching narrative and with frequent sidetracks into deep rabbit holes on examples, it becomes a bit of a slog to get through unrelated and unlinked ideas that don’t tie back to one big idea of a proposed economic alternative.

[Louise Foerster · Rating 2 out of 5]

Nick Romeo's THE ALTERNATIVE is designed to challenge preconceived notions of the way things have to be in our world. Covering our major organizational and social structures, Romeo proposes remedies to counter what he views as destructive, unfair, and biased organizations and ways of life. Unfortunately, the book is not the enjoyable debate about ways to reconsider our ways of life. I abandoned reading when the heavy-handed pressure to agree with his views and lightweight sources felt as authoritarian and biased as the very systems he seeks to overthrow. I received a copy of this book and these opinions are my own, unbiased thoughts.

[Jacob Wren · Rating 5 out of 5]

“In his collected writings, José María Arizmendiarrieta championed a revolutionary pragmatism. To deserve the name, idealists must take their own goals seriously enough to try to realize them. “The ideal thing is to do the good that can be done, not the good that is dreamt of,” he wrote. The value of lofty ideals lies in their capacity to inspire action: “Great ideals do not have to be precisely attainable to be useful to us.” For those who critique current systems but create nothing better to replace them, his words still offer a pointed challenge: build institutions, develop capacities, and change legislation. “No moans but action,” he urged. The noblest ideals risk becoming empty rhetoric if not married to effective and disciplined execution. “Being badly organized should not be confused with having respect for freedom.”

Despite his eloquent insistence on pragmatic action, Arizmendiarrieta also rejected a utilitarianism that values only results. How something is achieved matters. “It is not enough for the managers and bosses to perform good deeds, it is necessary that the workers participate,” he wrote. If an enlightened executive in a traditional company chose to cap their pay at six times the salary of the lowest-paid employee, this would be good. It would also resemble the decree of an enlightened monarch. Within Mondragon, members of the cooperatives have voted democratically on the ratio between the highest and lowest compensation levels. Particular cooperatives are free to have a ratio smaller than 6:1, as many do; member-owners could also vote to expand the ratio in the future. Mondragon’s institutional design depends on democracy. It can flourish only if most individuals continue to value its traditions of equality and solidarity. Rather than assuming that markets alchemize private greed into public good, Arizmendiarrieta built the cooperatives in a way that emphasized both institutional safeguards and individual moral character: “There can never be great works without people giving generously and without them sacrificing their selfish appetites,” he wrote.

Arizmendiarrieta’s defiance of easy categorization makes him a provocative challenge to many contemporary shibboleths. He created effective institutions without ignoring the importance of individual ethics; he recognized the value of capital and profit but saw both as subordinate to broader social aims; he created a business structure that competed effectively in international markets while rejecting basic assumptions of capitalist firms. Perhaps most astonishing of all, his insights were not merely theoretical achievements; they were realized in a dense web of structures that have become the largest worker-owned cooperative in the world.”

[Liz Schasel · Rating 5 out of 5]

YESSSS read this!! If you believe we are in a planetary crisis, you may also believe our existing economic system is unquestionably failing us. And yet, “The strongest evidence that alternative arrangements are viable is to show that they already exist.” This book provides a beautifully well-researched overview of ideas like job guarantees, employee ownership, true pricing, participatory and climate budgeting, cooperative takeovers, purpose trusts, pervasiveness of neoliberal economics education amounting to propaganda, a National Investment Authority, and more…all of which EXIST today and are expanding around the world and already making it a better place.

“Future generations may regard economic systems that do not reflect the true price of goods—including their impacts on workers, the natural world, and future generations—as in controversially wrong, just as we regard the institution of slavery today.”

The book acknowledges that no policy on its own is a comprehensive solution to the economic, political, social, and climate problems we face. But “the fact that life and culture are already quite different in some of the places where only a few of these initiatives exist suggests the potential for deep transformation even if three or four were broadly adopted in the same region and could work in synergy.” We’re talking SYSTEMS CHANGE!!!

Loved this & recommend it to all.

[Nico Sobczak · Rating 4 out of 5]

Title: A Thought-Provoking Journey: "The Alternative" by Nick Romeo

"The Alternative" by Nick Romeo is a captivating exploration of unconventional lifestyles and the search for meaning in a world driven by societal norms. Through vivid storytelling and meticulous research, Romeo delves into the lives of individuals who have chosen paths less traveled, challenging the status quo and redefining success on their own terms.

Romeo skillfully navigates through various alternative lifestyles, from minimalist nomads to urban farmers, offering readers a glimpse into the motivations and philosophies that drive these individuals to forge unconventional paths. Each chapter is a compelling narrative that not only sheds light on the practical aspects of these lifestyles but also delves into the deeper existential questions that underpin them.

What sets "The Alternative" apart is its ability to strike a balance between insightful analysis and engaging storytelling. Romeo's prose is both eloquent and accessible, drawing readers into the lives of the people he profiles while also prompting them to reflect on their own values and aspirations.

Throughout the book, Romeo emphasizes the importance of questioning societal norms and reimagining the concept of success beyond material wealth and status. Whether discussing the virtues of simplicity, the allure of off-grid living, or the challenges of embracing radical self-reliance, "The Alternative" invites readers to reconsider their own priorities and assumptions about the good life.

While some may view the lifestyles depicted in "The Alternative" as extreme or impractical, Romeo's nuanced portrayal reminds us that there is no one-size-fits-all approach to happiness and fulfillment. By showcasing the diversity of human experiences and aspirations, he encourages readers to embrace authenticity and pursue paths that align with their deepest values and desires.

In conclusion, "The Alternative" is a thought-provoking and timely exploration of contemporary counter-cultures and the quest for meaning in a rapidly changing world. Whether you're intrigued by alternative lifestyles or simply seeking inspiration to live more intentionally, Nick Romeo's book offers valuable insights and perspectives that will stay with you long after you've turned the final page. Highly recommended for anyone curious about the road less traveled.

[Mariya Kiriyak · Rating 3 out of 5]

As a person far away from economics, I found the book interesting but hard to read - even though it doesn’t have too much of a specific vocabulary. Presented ideas did catch my attention and made me think - especially those, where private people can actually contribute - like true prices or participatory city budgets. Some other things (cooperations or job security) are hard to imagine since the notion of capitalism as a best economical setting is rooted quite deeply. Author gets a bit too dramatic in defending those ideas (for example, unemployment -> ‚nazi moods’ connection is very stretched), and makes them less credible at times.

I also wondered if the first chapter about math use in economics is still valid, or AI can run the full statistics on the history and get the better answers.


„Most economics is misunderstood politics.“

„The notion that ethical, “high-road” companies can “do good by doing well” is partly true: workers do a good job and quit less frequently if they are not exploited“

„Being badly organized should not be confused with having respect for freedom.“

„Hard times make strong people, strong people make good times, and good times make weak people“

„We tend to think the world is less unequal than it really is, and we would like it to be more equal than we think it is.“

„ If corporations are people, what kind of people are they? One answer is bleak but often accurate: they’re psychopaths.19 Corporations have no innate moral impulses, and most exist solely for the purpose of making money“

„Baby boomers approaching retirement own roughly 2.3 million American businesses and employ around 25 million workers.“

„Tolstoy: When people behave badly they always invent a philosophy of life which represents their bad actions to be not bad actions at all, but merely results of unalterable laws beyond our control“

„The Overton window—social science jargon for the policy ideas politically acceptable to the mainstream at a given time—is shaped by our beliefs and attitudes.“

[Dini Mohamad · Rating 4 out of 5]

The book cites many models and alternatives to a hungry profit-chasing society which I didn't know existed. Very enlightening. But it just got so long that I had to force myself to read until the end...

[Margaret Bowman · Rating 3 out of 5]

3.5. Interesting set of alternative ideas, and good storytelling about them. Ultimately a bit dry however.

[David · Rating 4 out of 5]

A very thought-provoking book, and a worthwhile read. Plenty of people have vague principles they'd like us to reach for, but Romeo presents actual, concrete things we can do to make the economy more just. This isn't pie in the sky—he's giving examples of things that have been successfully implemented and is just asking us to think about implementing them more broadly or use them as starting points.

I thought most of the book was very good. The only exception was the chapter "The Meaning of 'Living' ", where Romeo throws repeated vitriolic attacks at Amy Glasmeier, the MIT economic geographer who works on a "living wage calculator". Glasmeier is clearly trying to help with this very real problem, and has by Romeo's own description updated her methods in response to legitimate criticism, but Romeo slams her for creating a standard where people would "enjoy few amenities and save nothing for retirement, vacations, or unexpected mishaps" (p. 101). It feels like Romeo is aiming at an impossible standard—"even the most progressive areas of America have wage laws that pay workers less than half the wage required to live with virtually no amenities and no savings [how he describes Glasmeier's living wage calculation]" (p. 104). By Romeo's own description this means the majority of people in the US cannot live on what they make, not even a minimal life with "no amenities and no savings". Yet somehow people do live in these places, and most of them live okay lives. I did it myself at one point. So clearly Romeo is off base about the income needed for an okay life, perhaps because his idea of "amenities" and "vacations" is that of someone who moves in the circles that someone who writes for The New Yorker and teaches at UC Berkeley moves in.

Romeo also doesn't address that his numbers are dramatically inflated because of including the cost of child care. He doesn't acknowledge childfree or childless people, and doesn't recognize the networks of family, neighbors, schools, and after-school programs that enable most people to avoid paying for full-time child care (which is very expensive).


Quotable quotes

"What we need is not a revolution in values, but an economic system that reflects the values we already have." (p. 81)

"In his collected writings, [Don José María] Arizmendiarrieta championed a revolutionary pragmatism. To deserve the name, idealists must take their own goals seriously enough to try to realize them. 'The ideal thing is to do the good that can be done, not the good that is dreamt of' " (p. 192).

[Rosie · Rating 4 out of 5]

I can't pretend that I understood everything in this book, but I liked that compared to some other economics books that I've read recently, it provided specific examples of how alternative models can work (and already do work, in some places). Examples included the Mondragon worker cooperatives, participatory budgeting for local government, true pricing at some Dutch supermarkets on products like coffee, and various employee ownership models for business. I especially liked the chapter on using purpose-based trusts to secure the social good arm of certain businesses in the long term. It's cheering to be reminded that business owners are often motivated beyond profit, despite the economic theory norm of profit maximisation.

I'll leave a quote from the book here, which is one of the tidiest summaries that I've seen about why we should be thinking about alternatives:
"Ownership and investment of capital shape two defining twenty-first century issues: inequality and climate change. Our individual and political flourishing requires significant progress on both issues. Relative wealth equality on a destroyed planet is not appealing: nor is a green economy with astronomical wealth inequality".

[Byram · Rating 4 out of 5]

Starting from a perspective of how we got to where we are with economic timing, how it’s billing as a science has been too narrow and too closed to alternative viewpoints and scopes, the book fires an excellent job torpedoing tired economic “truisms” about human behavior and economic laws by showcasing actual real world examples of how societies have built more just economic models. Showing both the benefits and the warts, you don’t leave with an unrealistic optimism but, instead, a pragmatism and hope that this can be scaled up to ensure better economic justice. Highly recommended if you’re feeling down about the ways capitalism has been exploited to enrich the few and suppress the many but don’t necessarily want to abandon capitalism

[Clark Kovacs · Rating 5 out of 5]

The Alternative fills me with excitement and optimism for the future. After reading this book, I feel lightened of the burden of fatalism about modern economic conditions I didn’t even realize I carried with me. Nick provides a clear understanding of active and ongoing, but in no way inevitable, choices that have led to immeasurable and unnecessary suffering. But the communities and individuals he writes about in this book, those trying and succeeding to create change, can’t help but fill you with a rising sense that things won’t stay the same way forever. On top of it all, the book is a true pleasure to read. I cannot recommend The Alternative enough.

[Grace Erny · Rating 5 out of 5]

I really enjoyed this thoroughly reported and researched book on exciting new ideas to make our economy fairer and more sustainable. Economic policy might sound like it makes for dry reading, but Romeo (a long-time New Yorker contributor) manages to depict the real impact of these new initiatives on the lives of people around the world. It's hard to feel positive about the direction our economy is heading, but this book demonstrates that it's not impossible to achieve a more just world. Highly recommend.

[Roger · Rating 4 out of 5]

Fantastic work to provoke one’s responsibility to assess the repeat question, “ how can we keep the works from getting worse?” True prices, living wages, job guarantees, public sector on demand employment, worker-owned cooperatives, perpetual purpose trusts, participatory budgeting, and real economics give great subjects to discuss and ruminate on how we can actually improve the things we seem to see as our doomed future. Far from perfect, this book still delivers on what I appreciate most in a book: well explained positions that spark the desire to speak up and take action.

[Jude Mercer · Rating 5 out of 5]

One of the absolute most important books I’ve read this year. It is time to get creative and think more expansively about what is possible especially in economics. Exciting to read and requires being flexible; imagining that a better more just world is possible and within reach.

“A major obstacle to an expanded sense of possibility is the belief that current social and economic arrangements are the results of inevitable laws”

[Morgan · Rating 3 out of 5]

My 3-star rating feels a little harsh given that I actually found the ideas and approaches discussed in The Alternative thought provoking. The problem was that I wished the author had (a) pulled together more of a narrative across chapters and (b) been a little less heavy-handed with the stories in exchange for spending more time discussing tangible outcomes-based points and counterpoints regarding the approaches presented. Overall, a 3.5-star read.

[Craig · Rating 4 out of 5]

The first chapter alone, on the underlying assumptions of neoliberal economic models, is worth the price of admission. Each of the subsequent chapters presents a case study in alternative approaches to various aspects of our economy - from cooperative or pursue-trust ownership of businesses to true-cost pricing and more accurate representations of livable wages.

[Christine Schiavo · Rating 4 out of 5]

Thought-provoking book that makes the case and provides real-world examples of alternatives to capitalism that have proved successful. I don't gravitate to books about economics, but this one was easy to comprehend because it is filled with examples, anecdotes and characters, making it an enjoyable read.

[Trevor Niermann · Rating 4 out of 5]

Really interesting ideas with real life examples to promote an equitable economy in the US. The middle class is shrinking as the wealth gap grows… this doesn’t have to be an “inevitable consequence” of the free market. Ideas I found intriguing: worker-owned cooperatives, job guarantees, and a public gig work platform.

[Matthew · Rating 5 out of 5]

Fantastic review of actual efforts across the world to reduce the massive economic inequalities that are causing so much damage in our societies. The book is not perfect, there are some overlooked aspects that have effects, but its overarching message of changing the way we look at economics is incredibly important.

[Carol · Rating 4 out of 5]

It doesn’t have to be this way and how our economy is currently is not inevitable

Profiles current solutions that is implemented more widely could make things a lot more equitable

We can have nice things!

[Hannah · Rating 5 out of 5]

Wow. Absolutely fascinating. A number of interesting possibilities, all with specific examples of where the approaches are being implemented. Honestly, reading things like this makes me want to get into local government and/or policy. Highly recommended.

[Scott Schneider · Rating 4 out of 5]

A great read to give one hope that we can build a fairer and just economy. Giving positive examples from around the world, Romeo shows that it is possible. We just need the political will to make it happen.

[Rayna · Rating 5 out of 5]

Lots of good ideas in here, especially for folks looking to create changes within their own economic systems. There’s something here for everyone, regardless of their position in society, to take action on.

[Aida Saldana Hernandez · Rating 5 out of 5]

Great book!
I was excited to read about the possibilities of building a just economy and how some cities already started to see changes where there is more equality and people have access to decent jobs! It is a very inspirational book :)

[Matthew Jacobs · Rating 5 out of 5]

Some of its ideas seem infeasible, but definitely a thought-provoking read.