The most recommended books on value in economics

Malcom Gladwell is undoubtedly the best translator of social science research writing these days. 

What the Dog Saw is a compendium of New Yorker essays penned by Gladwell, several of which have a direct link to managing people. Two of my favorites are “Late Bloomers” – an essay on the fallacy of inherent talent, and “Most Likely to Succeed”.

These essays say a lot about employee selection and development, challenging the assumptions held by too many managers that good staff are born, not made, and that selecting top talent is the key to competitive advantage. Gladwell goes with the evidence, but does so in a super-engaging manner. 

If you want to learn about the history of the concept of authenticity and how it is understood in the western world, this is probably the best book to read (after my book, of course!). Charles Taylor is one of the most prominent living philosophers of selfhood, and this book (topping out at only a little over 100 pages) is an easy-to-read digestion of the ideas that he elaborated in his much-longer book Sources of the Self. Taylor is ambivalent about whether personal authenticity is a good or a bad thing in our era. He recognizes the harms imposed by some of the debased forms that it takes in modern society, but Taylor also tries to articulate an ethics that could rehabilitate authenticity in a way that affirms the dignity of and respect for each individual. I don’t like the fence-sitting, but this remains required reading.

I like this book because it takes a giant step back and asks what “the economy” means. What we measure, and what we choose to classify as “economic activity”, is a choice, not a given. By opting to classify some things as true economic activity (e.g. finance) but others as not (e.g. raising kids) we implicitly make choices about economic policy, as it can only deal with what it can count. It opens up the idea that we could stop and think about what should matter to the economy, and what may not.

Viviana Zelizer’s book told me the fascinating story of the cultural transition from a time when children provide to parents mostly financial well-being to a time when children provide only life well-being.

In the 18th century, in America, parents welcomed the arrival of their children mostly as workers when children were young and as security when parents were old. By the mid-19th century, however, parents of the urban elite welcomed their children mostly for their life well-being benefits in love, smiles, and successes that make parents proud.

Children, in Zelizer’s language, became ‘sacralized,’ economically worthless but emotionally priceless. By the early 20th century, working-class and poor parents joined elite parents in sacralizing their children. 

Liberals and conservatives strongly disagree on the appropriate scope of government. No book has helped me understand why more than Thomas Sowell’s Conflict of Visions.

He describes how the ideological difference results from disagreements about the malleability of human nature. The unconstrained vision, typically associated with liberals, sees human nature as altruistic and perfectible. The government should be used expansively to promote social justice and equality to realize this vision. 

In contrast, the constrained vision, typically associated with conservatives, sees human nature as limited, selfish, and imperfectible. The government should play a limited role in society, as elites cannot hope to restructure society without unintended destructive consequences.

This book written in 1922 by the Austrian economist at the University of Vienna is one of the few truly foundational works in political economy. Mises takes apart the theory of the Marxist moneyless planned economy which Lenin and then Stalin tried to apply to the Soviet Union. Mises lucidly explains why not only that it could never work but would lead to catastrophic and unending shortages, dictatorship, repression, and arbitrary rule enforced by a militarized one-party state. Although Mises had no knowledge of China, it is the best book to read in order to understand what happened in China in the 20th century.

Sociologist Viviana Zelizer began the research quest to understand modern American childhood and policies toward children by proposing that how we understand the value of children changed radically in the late nineteenth century. 

By redefining children as emotional assets rather than as economic investments—as objects of love and caretaking, rather than contributors to the household and public economy—American parenting was revolutionized.

This fundamental transformation offers the basis for understanding policy changes, a new commitment to schooling, and other efforts on behalf of children that took root at the turn of the twentieth century.

This book is one of the most effective attacks against the market tendency to commercialize any good, ending up corroding what is most intrinsically human in social relationships and in people's intimate lives.

The effectiveness of the book lies in the examples, ranging from the sale of kidneys to paying someone to be substituted in the queue.

The most important lesson of the book is that market-driven economic growth has not only transformed the environment to make our lives more comfortable, thus hitting the limit in environmental degradation, but it has also transformed ourselves, because it has made us more consumers and less human.

This silent transformation - the philosopher Sandel teaches us - must be limited.

I grabbed this book off a bargain shelf, unsure whether it was fiction. That was a perfect misconception. I encourage you to buy the book without finding out.

Read this description and nothing else: Boggs is an artist. His work: exquisite duplicates of currency notes. Not counterfeits! Boggs always emphasizes that his bills are art, not currency. Nevertheless, he attempts to “spend” them. After running up a restaurant tab for $87, he offers to “pay” his server a drawing of a $100 bill—which, of course, is hard to price, being art, but he’s willing to value it at, let’s say…how does $100 sound?

His work, then, is not just the bills. It is the bizarre interactions with strangers, the way he challenges them to think about value, money, currency, art, exchange… all very interesting, in a good way. But when the Secret Service gets involved, it’s interesting in a less… show more.