The Economics of Enough: How to Run the Economy as If the Future Matters

by Diane Coyle

Overview

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.

Product Details

ISBN-13:	9780691145181
Publisher:	Princeton University Press
Publication date:	03/06/2011
Edition description:	New Edition
Pages:	336
Product dimensions:	6.40(w) x 9.20(h) x 1.20(d)

About the Author

Diane Coyle runs Enlightenment Economics, a consulting firm specializing in technology and globalization, and is the author of a number of books on economics, including The Soulful Science (Princeton), Sex, Drugs and Economics, and The Weightless World. A vice-chair of the BBC Trust and a visiting professor at the University of Manchester, she holds a PhD in economics from Harvard.

Table of Contents

Overview 1

PART ONE: CHALLENGES

CHAPTER ONE: Happiness 21

CHAPTER TWO: Nature 55

CHAPTER THREE: Posterity 85

CHAPTER FOUR: Fairness 114

CHAPTER FIVE: Trust 145

PART TWO: OBSTACLES

CHAPTER SIX: Measurement 181

CHAPTER SEVEN: Values 209

CHAPTER EIGHT: Institutions 239

PART THREE: MANIFESTO

CHAPTER NINE: The Manifesto of Enough 267

Acknowledgments 299

Notes 301

References 313

Illustration Credits 327

Index 329

What People are Saying About This

From the Publisher

"Unlike many economists, Diane Coyle is a worldly philosopher! This nuanced book provides an illuminating analysis of the key debate over whether free market growth translates into improvements in our quality of life."—Matthew E. Kahn, University of California, Los Angeles

"This is a fine and interesting book with plenty of wise observations and good economic analysis. Diane Coyle is a terrific writer and an economist of real insight."—Edward Glaeser, Harvard University

"Diane Coyle has written a lively and challenging examination of the state of economic policymaking following the recent financial crisis."—Nicholas Crafts, Warwick University

Editorial Reviews

Coyle believes that the recent financial crises was "a catalyst for many people to ask fundamental questions about the way the economy is organized, and about the links between the economy and what kind of society we'd like," and uses her well-reasoned new effort to seriously examine those questions. Coyle (The Soulful Science), a part-time professor who runs a consulting firm specializing in technology and globalization, divides her book into Challenges, Obstacles, and a "Manifesto." With chapters "happiness," "nature," "posterity," "fairness," and "trust," she analyzes current problems; though happiness has been debated by philosophers for centuries, in the last decade, "economists have muscled into" the debate. While economic growth is essential, Coyle argues that the way it is achieved must change. She defines obstacles to that change, arguing for a broadening of what we value to include intangibles, like entertainment and nursing services. Her "Manifesto of Enough" calls for enlightened economic policies that will allow for growth and create a sustainable world. While Coyle wants to reach out to reasonable people of all political stripes, it's not hard to see where her heart is when she states that teachers contribute more socially than they are paid, and that bankers' social contribution is greatly exceeded by their pay. Photos. (Mar.)

Publishers Weekly

One of The Globalist's Top Books of 2012

"In The Economics of Enough, Ms. Coyle adds a knowledgeable and earnest voice to the discussion about how to face these global challenges. . . . Ms. Coyle has written a thoughtful, sprawling work. I was impressed with both the magnitude of the subject matter and her keen grasp of it. . . . Coyle has made an important contribution to the debate on the nature of global capitalism."—-Nancy F. Koehn, New York Times

"If widely read, [The Economics of Enough] could be the twenty-first century's basic action manual. Like the best political philosophers, Coyle does not merely present the gritty reality of politics (or political economy, in this case), but gives us a roadmap out of our collective swamp. . . . [T]he book is a small wonder."—-Joel Campbell, International Affairs

"If Diane Coyle had written The Economics of Enough a year or so earlier, a British political party would probably have laid claim to its message during the general election campaign. Coyle's work manages to tie up fiscal policy, inequality and the environment with reflection on civil society. . . . Coyle makes a particularly effective assault on the view, often espoused by environmentalists, that economic growth ought not to be a policy goal. While she calls for other objectives—and the use of a greater range of economic indicators—she backs output growth as an objective. . . . [A] solid guide to the challenges that face governments in the coming years."—-Christopher Cook, Financial Times

"[Coyle's] insistence that the crisis is essentially one of trust and governance is important—and increasingly relevant as we watch our leaders failing to tame our reckless financial overlords."—-Fred Pearce, Independent

"Coyle's book is . . . a very welcome supplement to the current dearth of smart, broad, readable economic literature now available. . . . Coyle's book demonstrates her to be a political economist of the old school, concerned with economics as a truly social science rather than an abstract mass of numbers. As such, her work merits a much broader audience than it is likely to find in our contemporary political climate."—-Matthew Kaul, Englewood Review of Books

"Are we bankrupt? Are countries like the US and the UK in as much fiscal trouble as Ireland or Greece? The bond markets say no: they've been quite content to lend to the UK and the US as though they were low-risk propositions, and perhaps they are right. But even if bond holders look safe enough, citizens may not be. Diane Coyle, author of a new book, The Economics of Enough, argues that we need to go beyond traditional measures of debt in thinking about future obligations."—-Tim Harford, Financial Times

"Designed for readers well versed in economics, this book offers an in-depth economic analysis that often supports arguments with philosophical and sociological theories."—-Caroline Geck, Library Journal

From the Publisher

"From the somewhat playful Sex, Drugs, and Economics, to the more descriptive and objective The Soulful Science, economist and superb writer (too often mutually exclusive categories) Coyle presents her more general assessment in The Economics of Enough. Blending economics with politics and philosophy, she uses the recent financial crisis as an opportunity to discuss a number of grander themes with the goal of a better and sustainable future, which is to be aided and abetted by a better-informed citizenry led not by an invisible hand but by the fist of more enlightened government."

Choice

Noted economist Coyle (Univ. of Manchester; Sex, Drugs & Economics: An Unconventional Introduction to Economics) analyzes current governmental policymaking, business practices, and societal trends to examine the world that future generations will inherit. Societies in the industrialized world may face a future plagued by high tax burdens relating to public health care and pension costs generated by an aging population with low birthrates. Diminishing natural resources and climate change will also be factors with which to contend. The nine chapters examine possible solutions, such as productivity gains from information and communication technologies, restructuring by societies, and savings by individuals. Coyle also advocates new measurements beyond gross domestic product that account for intangible items. Coverage of topics like management of state pension funds seems especially timely. VERDICT Designed for readers well versed in economics, this book offers an in-depth economic analysis that often supports arguments with philosophical and sociological theories. Because of its complexity, it is recommended solely for academic collections.—Caroline Geck, MLS, Newark, NJ

Library Journal

The Economics of Enough is a thoughtful and reflective piece addressing the interplay between governments and markets in a 'post-financial crisis' world. . . . The book serves as a good foil for deeper discussions of the implications and results of the attempt to govern complex systems—both political and economic—fraught with their inevitable webs of adverse selection, moral hazard, and self-interest.

EH.Net - Bradley K Hobbs

[A] compelling call to action. . . . [T]his is a powerful, thought-provoking and timely contribution to the debate on the evolving shape of society.

Nature Climate Change - Dimitri Zenghelis

There is much good thinking and plenty of good ideas in [T]he Economics of Enough. For many readers, the book will be a revelation in just how far we have moved from economics as a 'dismal science.' For the business reader, Coyle opens up a range of broader perspectives that will on the one hand challenge the neo-classical economic purist and, on the other, will encourage those who want their children to have more than a dismal future, to do something about it.

Management Today - Roger Steare

There is much good sense in The Economics of Enough, and Coyle writes efficiently and clearly.

Times Higher Education - Howard Davies

Are we bankrupt? Are countries like the US and the UK in as much fiscal trouble as Ireland or Greece? The bond markets say no: they've been quite content to lend to the UK and the US as though they were low-risk propositions, and perhaps they are right. But even if bond holders look safe enough, citizens may not be. Diane Coyle, author of a new book, The Economics of Enough, argues that we need to go beyond traditional measures of debt in thinking about future obligations.

Financial Times - Tim Harford

Coyle's book is . . . a very welcome supplement to the current dearth of smart, broad, readable economic literature now available. . . . Coyle's book demonstrates her to be a political economist of the old school, concerned with economics as a truly social science rather than an abstract mass of numbers. As such, her work merits a much broader audience than it is likely to find in our contemporary political climate.

Englewood Review of Books - Matthew Kaul

[Coyle's] insistence that the crisis is essentially one of trust and governance is important—and increasingly relevant as we watch our leaders failing to tame our reckless financial overlords.

Independent - Fred Pearce

If Diane Coyle had written The Economics of Enough a year or so earlier, a British political party would probably have laid claim to its message during the general election campaign. Coyle's work manages to tie up fiscal policy, inequality and the environment with reflection on civil society. . . . Coyle makes a particularly effective assault on the view, often espoused by environmentalists, that economic growth ought not to be a policy goal. While she calls for other objectives—and the use of a greater range of economic indicators—she backs output growth as an objective. . . . [A] solid guide to the challenges that face governments in the coming years.

Financial Times - Christopher Cook

If widely read, [The Economics of Enough] could be the twenty-first century's basic action manual. Like the best political philosophers, Coyle does not merely present the gritty reality of politics (or political economy, in this case), but gives us a roadmap out of our collective swamp. . . . [T]he book is a small wonder.

International Affairs - Joel Campbell

In The Economics of Enough, Ms. Coyle adds a knowledgeable and earnest voice to the discussion about how to face these global challenges. . . . Ms. Coyle has written a thoughtful, sprawling work. I was impressed with both the magnitude of the subject matter and her keen grasp of it. . . . Ms. Coyle has made an important contribution to the debate on the nature of global capitalism.

New York Times - Nancy F. Koehn

The Economics of Enough is a thoughtful and reflective piece addressing the interplay between governments and markets in a 'post-financial crisis' world. . . . The book serves as a good foil for deeper discussions of the implications and results of the attempt to govern complex systems—both political and economic—fraught with their inevitable webs of adverse selection, moral hazard, and self-interest.

EH.Net - Bradley K. Hobbs

The Economics of Enough is a thoughtful and reflective piece addressing the interplay between governments and markets in a 'post-financial crisis' world. . . . The book serves as a good foil for deeper discussions of the implications and results of the attempt to govern complex systems—both political and economic—fraught with their inevitable webs of adverse selection, moral hazard, and self-interest.
— Bradley K Hobbs

EH.Net

[A] compelling call to action. . . . [T]his is a powerful, thought-provoking and timely contribution to the debate on the evolving shape of society.
— Dimitri Zenghelis

Nature Climate Change

There is much good thinking and plenty of good ideas in [T]he Economics of Enough. For many readers, the book will be a revelation in just how far we have moved from economics as a 'dismal science.' For the business reader, Coyle opens up a range of broader perspectives that will on the one hand challenge the neo-classical economic purist and, on the other, will encourage those who want their children to have more than a dismal future, to do something about it.
— Roger Steare

Management Today

There is much good sense in The Economics of Enough, and Coyle writes efficiently and clearly.
— Howard Davies

Times Higher Education

Coyle's book is . . . a very welcome supplement to the current dearth of smart, broad, readable economic literature now available. . . . Coyle's book demonstrates her to be a political economist of the old school, concerned with economics as a truly social science rather than an abstract mass of numbers. As such, her work merits a much broader audience than it is likely to find in our contemporary political climate.
— Matthew Kaul

Englewood Review of Books

[Coyle's] insistence that the crisis is essentially one of trust and governance is important—and increasingly relevant as we watch our leaders failing to tame our reckless financial overlords.
— Fred Pearce

Independent

Are we bankrupt? Are countries like the US and the UK in as much fiscal trouble as Ireland or Greece? The bond markets say no: they've been quite content to lend to the UK and the US as though they were low-risk propositions, and perhaps they are right. But even if bond holders look safe enough, citizens may not be. Diane Coyle, author of a new book, The Economics of Enough, argues that we need to go beyond traditional measures of debt in thinking about future obligations.
— Tim Harford

Financial Times

If widely read, [The Economics of Enough] could be the twenty-first century's basic action manual. Like the best political philosophers, Coyle does not merely present the gritty reality of politics (or political economy, in this case), but gives us a roadmap out of our collective swamp. . . . [T]he book is a small wonder.
— Joel Campbell

International Affairs

In The Economics of Enough, Ms. Coyle adds a knowledgeable and earnest voice to the discussion about how to face these global challenges. . . . Ms. Coyle has written a thoughtful, sprawling work. I was impressed with both the magnitude of the subject matter and her keen grasp of it. . . . Ms. Coyle has made an important contribution to the debate on the nature of global capitalism.
— Nancy F. Koehn

New York Times