Price, Liberty and the Pursuit of Happiness

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JEFFERSON COUNTY, KANSAS.*  In 1947, two titans of 20th-century economic theory, Ludwig von Mises and Wilhelm Röpke, met in Röpke’s home of Geneva, Switzerland. During the war, the Genevan fathers coped with shortages by providing citizens with small garden allotments outside the city for growing vegtables. These citizen gardens became so popular with the people of Geneva that the practice was continued even after the war and the return to abundance. Röpke was particularly proud of these citizen farmers, and so he took Mises on a tour of the gardens. “A very inefficient way of producing foodstuffs!” Mises noted disapprovingly. “Perhaps so, but a very efficient way of producing human happiness” was Röpke’s rejoinder.

Deep Economy: The Wealth of Communities and the Durable Future by Bill McKibben is essentially a book-length recapitulation and exploration of the Mises-Röpke exchange. McKibben’s task is first to demonstrate the failure of established economic theory to provide an adequate and sustainable account of human well-being and second to develop an alternative paradigm that offers a more durable way forward. On the former count, Deep Economy must be considered a rousing success. On the latter, more difficult score, it is disappointing. McKibben provides valuable insight and important stories of resistance, but he would have benefited from a more thoroughgoing appreciation of the insights of the communitarian Right.

Deep Economy begins with some simple questions: What does it mean to be rich? Is more necessarily better? Why aren’t we happy? McKibben argues that while our preoccupation with utilitarian economics has produced unprecedented growth and material wealth, it has faltered when it comes to providing human happiness and satisfaction. For example, McKibben points out that the established measure of economic growth—the Gross National Product—incorporates perverse incentives for economic exchange such that the most productive (read “happy”) citizen is “a cancer patient who totals his car on his way to meet with his divorce lawyer.” Obviously, evaluating human welfare requires a more supple set of tools.

Far more alarming to McKibben, however, is that the “American way of life”—easy mobility, hyper-individualism, mass consumerism, and the commodification of all things at the altar of the market—has made our society dangerously unstable. “Peak oil” (the phenomena of global oil demand outpacing declining supplies) and global warming feature prominently in McKibben’s argument. He likewise cites studies and anecdotes describing Americans’ general sense of malaise and unease, the widening gap between the haves and have-nots, our obscenely high rate of incarceration, and so on—all despite the continued growth of GDP. This litany amounts to well-trodden ground, and McKibben ably covers it again.

For anyone paying attention, the suggestion that our current economic and social arrangements are like a rickety house just waiting for the roof to fall in is not a hard sell. It is clear that the era of abundant growth and progress driven by a nearly insatiable appetite for the earth’s accumulated stores of cheap fossil energy is nearing an end. It is clear that our political and economic elites are mostly in denial about what this means for our social order. It is clear, whether one buys McKibben’s global-warming alarmism or not, that our sprawl mania is ecologically unsustainable, causing dangerous depletions of natural resources from top soil to water. It is clear that the financial sector is hopelessly overburdened with a legacy of cheap money (which means high debt) backed solely by the presence of cheap oil. It is clear that policy makers in Washington are intent on continuing to provide centralized subsidies to this stumbling behemoth thereby squelching the possible development of true alternatives. Finally, it is clear that as the billions of consumers in the developing world come online and begin to want and expect what we want and expect, the age-old law of scarcity will reassert itself with a vengeance.

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