From moral to market sentiments

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We highly recommend Mark Carney’s first Reith Lecture:

• The means by which we measure economic value is market price. This method of valuation is so dominant that the concept of value is hardly discussed, but it should be. We must question faith in values based solely on market prices.
• There are grave risks from the combination of subjective valuation and market fundamentalism that we have today. The most profound of these risks being the drift from moral to market sentiments. For example, market values and reasoning reach into areas of life previously governed civic virtues, but putting a price on something previously given for free can corrode the value of the activity being priced.
• Forcing decisions to be made on utilitarian grounds encourages trade-offs which are not appropriate. For example between growth today and crisis tomorrow, or between planet and profit. He also questioned GDP accounting where contributions are measured solely by the money value of wages, not by wellbeing.

Watch the lecture!