Michael J. Sandel
Michael J. Sandel’s ‘The Tyranny of Merit‘, which questions what has become of ‘common good’, remains a favourite because it touched upon a topic that is not found commonly in public discourse. “What Money Can’t Buy” continues that approach, and is about the invasion of market economics into areas of life that were previously considered above it – education, government, our physical body, and family life, among others. The book is about whether there is a moral limit to the reach of markets. I was reminded of “When money is made the measure of all things, it becomes the measure of all things.”
The book starts with multiple examples of what I would call the overreach of markets – upgrading a prison cell, the right to shoot an endangered black rhino, stand in line in Capitol Hill in place of a lobbyist, get paid in primary school to read a book, pay life insurance premium on behalf of an elderly person you don’t know and collect the payout after their death, and so on. Sandel points out that it is not just greed, it is the expansion of the market into spheres of life we once thought were beyond it.
“Drifting from having a market economy to being a market society.” The former is a tool for organising productive activity, the latter is one in which social relations are made over in the image of the market.
In the subsequent chapters, he provides a huge set of scenarios where this is playing out. Examples of jumping the queue using money – from fast tracks in airports and supermarkets to hiring people to stand in queues in Capitol Hill or exclusive events. A rare opposite is Springsteen’s concerts whose pricing reflects that he sees it more as a social event than a market good. The principles of ‘wait in line’ and ‘don’t jump the queue’ are relics.
Monetary incentives are being used for everything from sterilisation to good grades to losing weight to immigration, and refugees (paying another country to take your share) to pollution permits and carbon credits. An insightful point is the nuance between fines and fees. Fine carries moral weight, it points out that you’re doing something wrong, fees is a transaction. Sandel notes how economics tries to stay away from ethics and quotes Levitt and Dubner, “Morality represents the way we would like the world to work, and economics represents how it actually does work.” But by getting into social aspects, this distinction starts to blur.
When money gets introduced into the social sphere, it starts crowding out morality – in China, you can hire someone to apologise on your behalf. But you needn’t go that far – cash vs a wedding gift, and the middle ground of a gift card is a good example to chew on. There is also the counter example of a town in Switzerland which agreed to be a waste site for nuclear material considering their civic duty, but promptly withdrew when each resident was offered monetary compensation. Another example is the Israeli day care, where introducing fines for parents who came late to pick up their kids increased the number of late arrivals, because it eroded the parents’ sense of responsibility by making it a transaction.
Even life and death are not exempt. The good use case of insurance is transformed into what is called janitors insurance. Companies buy insurance on behalf of employees without their knowledge and cash in, creating a revenue source! Then there are viatical investments – say a person with a $100000 policy is told that he has a year to live. An investor buys that for half the price in cash, which the patient uses for treatment. The investor collects the insurance after the patient’s death! Thus people have an incentive for another person’s death! Insurance had been prohibited for centuries just to prevent this! But now, investors buy insurance of elderly people using the same tricks. It is a major industry. There are also sites that apparently allow bets on celebrities dying in a particular year.
Naming rights of public places in lieu of payment is another area of infringement. It has moved beyond stadia and sports to prisons and schools. In the latter, the corporate spin is allowed to varnish or even omit truth.
In all of this, two objections usually arise from those who oppose this- fairness and corruption. Fairness, because when money is introduced, those without it start losing access. Corruption, not in the way we normally use it, but how it degrades the original quality of the interaction. The Swiss and Israel examples point to that. Ironically economists see altruism as a valuable and rare good that depletes when used too much. And therein probably begins the warped worldview.
But as Sandel himself admits, this is a discussion on what we define as a good life, and whether that’s what we want to lead. Public discourse is increasingly becoming devoid of moral and spiritual substance and money continues its march. Call me a cynic, but I am struggling to see a way out. An excellent book to read, to at least remember how the world and humanity used to be.
