Thursday, November 15, 2012

Book Review :What Money Can’t Buy:The Moral Limits Of Markets


Author                  : Michael Sandel
Publisher               :Allen Lane
No.of pages          :235
Price                     :Rs.550
Year                      :2012

Have you ever heard of a company which makes money from  having people on its rolls  to stand in for you in a queue?Have you also known that among these line standing business companies, there are companies which specialize in certain types of line standing- for example, in the US Congressional committee hearings? That in US, where one has to wait for weeks and months for appointments with doctors, a concierge services have been offered by doctors at annual fees ranging from $1,500 to $25,000 for assuring same day or immediate appointments and 24-hour access to the doctor  by email and cell phone? That doctors and insurers offer cash incentives to patients to take drugs prescribed?That at times fines may be  considered as fees which lead people not to refrain from wrong doings?That a non-violent criminal can upgrade the prison cell – a clean, quiet  jail cell- by paying  something like $82  per night?

These and many other things one can get to know and become enlightened  on the numerous ways of how  market factors pervade even areas which many of us thought were not or could not be influenced by markets, if we read What Money Can’t Buy by Michael Sandel.

Prof Sandel  describes how the ’non-judgmental  stance toward values  lies at the heart of  market reasoning and explains much of its appeal’. And, according to him, ‘our reluctance to engage in moral and spiritual argument, together with  our embrace of markets , has  exacted a heavy price; it has drained public discourse of moral and civic energy , and contribute to the technocratic, managerial politics that afflicts many societies today’.One clear advice that emanates from Mr.Sandel is that one  has to also follow moral judgments on markets and its behaviours.Our society, by and large, don’t permit selling of children or votes because selling these things will result in valuing them in the wrong way and cultivate bad attitudes.

Prof.Sandel also provides us with new insights regarding what corruption actually entails.The general assumption about corruption is ill-gotten gains.But according to him, corruption refers to more than bribes  and illicit payments.’To corrupt a good or a social practice is to degrade it, to treat it according to a lower mode of valuation than is appropriate to it ‘, according to Sandel.Also, we can ascribe corruption when buying and selling happens in something that should  not be up for sale.Hence, he asserts that charging admission  to congressional hearings  is a form of corruption from this angle.He says that the process of charging treats Congress as if it were a business rather than institution representing government.

Most of the economists do not deal with moral questions in their usual role as economists.They believe in the price system that allocates goods/services according to people’s preferences; they don’t  bother about whether those preferences were worthy or admirable or even appropriate to the circumstances.For example he cites an economic analysis of marriage  by Nobel-winning economist Gary S.Becker.According to Becker, a person decides to marry when the utility expected from marriage exceeds that expected from remaining single.Also, a married person divorces when the utility anticipated from becoming single or marrying someone  else  exceeds the loss in utility from separation, including losses due to separation from one’s children, division of joint assets, legal fees etc. And Prof.Sandel  is of the opinion  that love, obligation and  commitment in marriage are ideals  that can’t be reduced to monetary  terms  and that a good marriage is priceless.

Prof.Sandel also explains  how at times  fines will be considered as fees by those who pay fines.He narrates the experience of an Israeli day-care facility for children which imposed a fine on those parents who come late to collect their wards, causing lot of inconveniences for the day-care centre.According to pricing norms of economics theory, the instances of late collection of  their wards must have  come down.But, the number pf parents coming late to collect their wards in fact increased.This, according to Prof.Sandel, is the result of the parents  treating the fines as fees.

Sandel also gives a number of example where incentives have failed to work contrary to the economists’ view of incentives. He cites a case  how  51% of a  Swiss community accepted the proposal to have a particular place identified  for nuclear waste disposal as they thought it was a civic duty  on them in spite of the risks.But as economists added  sweeteners- to pay compensation for each resident of the community as high  as their median monthly income, the support came down from 51% to 25% as the residents felt that the compensation was a sort of bribe to buy their votes.

For the inquisitive and discernible reader, the book offers very interesting insights.A must read for those who study and follow market-oriented economic aspects.

About the author
Prof.Michael J.Sandel is the Anne T. and Robert M.Bass Professor of Government at Harvard University.His course ‘Justice’ is a big hit at Harvard  and is freely available online.He was named the ‘most influential foreign figure of the year’ in 2010,  by China Newsweek. His book Justice,  published in 2010(Farrar, Straus and Giroux),is an international best seller.

No comments: