Rethinking the Economy

Stumbling towards a new model for creating growth, opportunity, and justice

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Creating a Values-Based Economy, v 0.15

July 19th, 2010 · No Comments

My latest idea for tinkering with the values-based framework — reorganize v 0.1 so instead of having a section on myths followed by a section on alternatives, break it into pairs of myths and alternatives.

NOTE: This post is mostly for me — to help me get this next step out of my head and put it down on paper — so I’m using a lot of shorthand that may not be clear. Once I’ve got a better idea of what I’m really arguing, I’ll spell it out so it’s easier to understand.

Introduction
Our debate about the economy the economy is shaped by 3 myths that tilt the playing field in favor of the values of people with power — big corporations and the rich. If we stop believing these myths, we can develop an alternative way of talking about the economy that could give everyone a real say in choosing the values that shape our economy.

Myth: Government isn’t central to the market
Results
  • Behind the scenes, big corps & the rich stack odds in favor of their values
  • The strategy of”Ponying up” — i.e., solve problems through individual action — undercuts mobilizing
Alternative: Stack the Odds in Favor of Our Values [What]

 

Myth: Power isn’t central to the market
Results

  • No real discussion of imbalance of Corporate power. E.g., 2010 financial reform ignores power imbalance that led to 90s “deregulation,” which led to meltdown
  • Progressives oversimplify power. E.g., Glenn Greenwald’s “corporatism & corrupt government”
  • Wishful thinking. E.g., “carbon tax will solve all” instead of honest discussion with rural, exurban, auto workers, etc. on ensuring no one gets crushed
Alternative: Democracy: we should all have a real say in which value shape the economy [Who]
  • Checks & Balances
  • It Isn’t a Success until It’s Politically Sustainable
  • Players over Policy
  • Get Real: confronting conflicting interests & complexities of compromise head-on

 

Myth: The economy is too complicated to shape other than with market-based solutions

  • “The only alternative to market solution is Command and Control”
  • “The only alternative to market solution is regulations” — ” specific rules of what you can and can’t do
  • “Government can’t be smarter than the market”

Result: behind the scenes, big corps & the rich stack odds in favor of their values

  • EU’s Cap & Trade mess
  • Wall Street: in the name of creating jobs, carpet bombs jobs
Alternative: No Magic Wand — no solution, including market-based solutions, can be smart enough. a.k.a., “We Aren’t As Smart As We Think We Are [How]
  • Use a mix of approaches, based on real-world, not Econ 101/Market fairy tales, that encourage flexibility and creativity
    • Create/nurture new markets
    • Make it Easy/Visible — a.k.a., People Aren’t Calculators, Orgs Aren’t Calculators
    • Ban/require some behavior
  • Use feedback loops & hold people accountable



Some thoughts about v0.15

  • I like the idea of pairs of myth-alternative
  • But it ends up sounding like my spiel is more about the myths and not enough about the alternatives
  • Myth #3: the Alternative still sounds too mechanical. For example, how does creating/nurturing markets tied back to the values we care about? Or to creativity and flexibility?
  • Myth #1 & 2: the phrase “isn’t central to the market” doesn’t really capture the weird, peekaboo-like quality of how we talk about the role of government & power in the market
  • Where does my criticism of NIMBYism and McKibben’s Underpants Gnomes strategy fit into the framework?
  • The intro still isn’t snappy like not as snappy as the middle class was no accident

Tags: Model