The "Free Economy and the Value of Nothing

The Value of Nothing - Why Everything Costs So Much More Than We Think by Raj Patel

After the financial meltdown in 2008, even Alan Greenspan was re-thinking his absolute faith in the free market.  The housing crisis and the subsequent financial meltdown were, of course, only one example of a market that is often irrational and that doesn't factor in risk or other negatives (externalities) into the cost of goods.

Corporations are also examined, especially in light of the subsidies that they receive. As an example, consider the social subsidy that fast-food companies receive by paying poverty-line wages to their employees who then have to supplement their meager income with Medicare, food stamps, child nutrition programs and such (American examples were being used here, of course).  Total estimated payouts from state and federal governments to Burger King employees was estimated to be $273 million annually.

American markets' inability to price in pollution and other costs, show that corporate capitalism can't operate without such subsidies.

Ayn Rand's "tedious rationalizations for selfish behavior" come up occasionally and unfavourably, despite her current semi-rock star status with the market fundamentalists.

The role of government also get some space.  "Alan Greenspan...had ideological objections to the state,and Republicans have lately reformulated their objections to big government - now that they're no longer the majority within it - with chants of "Socialism" around the bailout or, if the discussion turns to health case, "Nazism"!

If you read this with an open mind, at least some of it will resonate with what many have identified as failures in the market, with unfettered corporate behaviour and with the role of governments.

One review in the G&M more or less summed up my thoughts on the book.