The value of everything Making and taking in the global economy

Mariana Mazzucato, 1968-

Book - 2018

"Who really creates wealth in our world? And how do we decide the value of what they do? At the heart of today's financial and economic crisis is a problem hiding in plain sight. In modern capitalism, value-extraction is rewarded more highly than value-creation: the productive process that drives a healthy economy and society. From companies driven solely to maximize shareholder value to astronomically high prices of medicines justified through big pharma's 'value pricing...9;, we misidentify taking with making, and have lost sight of what value really means. Once a central plank of economic thought, this concept of value--what it is, why it matters to us--is simply no longer discussed. Yet, argues Mariana Mazzucato in this penetrating and passionate new book, if we are to reform capitalism--radically to transform an increasingly sick system rather than continue feeding it--we urgently need to rethink where wealth comes from. Which activities create it, which extract it, which destroy it? Answers to these questions are key if we want to replace the current parasitic system with a type of capitalism that is more sustainable, more symbiotic - that works for us all. The Value of Everything will reignite a long-needed debate about the kind of world we really want to live in"--Publisher's description.

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Subjects
Published
New York : Public Affairs [2018]
Edition
First US edition
Language
English
Item Description
"First published in Great Britain in 2018 by Allen Lane, an imprint of Penguin Random House UK" -- Title page verso.
Physical Description
xix, 358 pages : illustrations ; 25 cm
Bibliography
Includes bibliographical references (pages 281-330) and index.
ISBN
9781610396745
161039674X
Main Author
Mariana Mazzucato, 1968- (author)
  • Preface: Stories about wealth creation
  • Introduction: Making versus taking
  • A brief history of value
  • Value in the eye of the beholder: the rise of the marginalists
  • Measuring the wealth of nations
  • Finance: a colossus is born
  • The rise of casino capitalism
  • Financialization of the real economy
  • Extracting value through the innovation economy
  • Undervaluing the public sector
  • The economics of hope.
Review by Booklist Reviews

British economist Mazzucato (Rethinking Capitalism, 2016) offers a fresh look at the meaning of value to the economy. She says value should be the center of all economic thinking. To her, this means value is defined by price—set by supply and demand—and as long as the activity accrues a price legally, it creates value. Since the economic crisis in 2008, Mazzucato notes that the rise of entrepreneurship, along with the past deregulation of financial industries, is fueling the fire of economic inequality and an economy without value. This skewed view, she notes, creates scenarios such as stagnant or falling wages for the majority of Americans, although the GDP has increased significantly since the 1970s, driving up wealth for only the elite. She also presents case studies, from Silicon Valley to Big Pharma, which drive home the disparity between value and perception of value. The book includes discussions on the wealth of nations, investments, inequality, government roles, privatization and more. This organized and easy-to-read book will appeal to curious readers as well as those interested in economics, investing, and public policy.  Copyright 2018 Booklist Reviews.

Review by Publisher Summary 1

The author of the controversial work The Entrepreneurial State argues that American companies have far too long been valued according to the amount of wealth they capture for themselves rather than for the value they create for the economy. 30,000 first printing.

Review by Publisher Summary 2

Modern economies reward activities that extract value rather than create it. This must change to ensure a capitalism that works for us all.Shortlisted for the FT & McKinsey Business Book of the Year Award A scathing indictment of our current global financial system, The Value of Everything rigorously scrutinizes the way in which economic value has been accounted and reveals how economic theory has failed to clearly delineate the difference between value creation and value extraction. Mariana Mazzucato argues that the increasingly blurry distinction between the two categories has allowed certain actors in the economy to portray themselves as value creators, while in reality they are just moving around existing value or, even worse, destroying it. The book uses case studies-from Silicon Valley to the financial sector to big pharma-to show how the foggy notions of value create confusion between rents and profits, reward extractors and creators, and distort the measurements of growth and GDP. In the process, innovation suffers and inequality rises. The lesson here is urgent and sobering: to rescue our economy from the next inevitable crisis and to foster long-term economic growth, we will need to rethink capitalism, rethink the role of public policy and the importance of the public sector, and redefine how we measure value in our society.

Review by Publisher Summary 3

Modern economies reward activities that extract value rather than create it. This must change to ensure a capitalism that works for us all.Shortlisted for the FT & McKinsey Business Book of the Year AwardA scathing indictment of our current global financial system, The Value of Everything rigorously scrutinizes the way in which economic value has been accounted and reveals how economic theory has failed to clearly delineate the difference between value creation and value extraction. Mariana Mazzucato argues that the increasingly blurry distinction between the two categories has allowed certain actors in the economy to portray themselves as value creators, while in reality they are just moving around existing value or, even worse, destroying it. The book uses case studies-from Silicon Valley to the financial sector to big pharma-to show how the foggy notions of value create confusion between rents and profits, reward extractors and creators, and distort the measurements of growth and GDP. In the process, innovation suffers and inequality rises. The lesson here is urgent and sobering: to rescue our economy from the next inevitable crisis and to foster long-term economic growth, we will need to rethink capitalism, rethink the role of public policy and the importance of the public sector, and redefine how we measure value in our society.