Book review for Phd module.. Writing a journal paper on Financial Econs to be published soon.

1. Book Review
The Economics of Enough
How to Run the Economy as If the Future Matters
Princeton University Press 2011, ISBN-13: 978-0691156293
by Adam Muza Muhayen
FIN960 Financial Economics - PhD Mixed Mode

2. About the Author
Diane Coyle
•Runs Enlightenment Economics - consulting firm specializing in technology and
globalization
•A visiting professor at the University of Manchester
•Holds a PhD in Economics from Harvard
•Former advisor to the UK Treasury
Subject Areas :
•Economics
•Finance
•Political Science
•International Relations
Other books authored or coauthored :
•GDP: A Brief but Affectionate History
•New Wealth for Old Nations: Scotland's Economic Prospects
•The Soulful Science: What Economists Really Do and Why It Matters

3. Table of Contents

4. PART ONE
“CHALLENGES”
“We have borrowed
massively from the natural and
human resources of the future –
to an extent that standards of
living will be lower... when people
have to service our massive
financial debts and live with
unknown environmental
changes.“
- Diane Coyle-

5. CHAPTER 1 : WHAT’S HAPPINESS?
The “positive psychology” movement
points to factors :
a) Active social engagement
b) Absorbing work
c) ‘Freedom’
This is consistent with empirical
economic research indicating important
indicators of reported happiness:
a)
b)
c)
d)
e)
Employment
Marriage
Religious participation
Political liberties
Income

6. GROWTH = HAPPINESS, NOT!
Financial & ICT
revolution
Borrowing from
the Future

7. IS THIS HAPPINESS?

8. CHAPTER 2: NATURE
•
The technological solutions needed for a lowcarbon future are available, and not so expensive.
•
The problem?? Finding the will and organization to
do what needs to be done to save future generations.

9. CHAPTER 3 : POSTERITY

10. FUTURE GENERATIONS??

11. CHAPTER 4 : INEQUALITY

12. REALITY of INEQUALITY

13. FAIRNESS??

14. CHAPTER 5 : TRUST

15. TRUST in INSTITUTIONS??

16. PART TWO
“OBSTACLES”
"We do want more in
order to be happier- but
how much more is
feasible without
destroying the natural
and social environment,
and how much more is
fair to the people who
will come after us?”
-Diane Coyle-

17. CHAPTER 6 : MEASUREMENTS
•
•
Adopt broader, longer-term measures of economic
well-being vs G.D.P.
Additional metrics - health, education, the
environment, employment, purchasing power, stocks of
the world’s resources and human capital

18. CHAPTER 7 : VALUES
Prof Barry Schwartz in his
book “The Paradox of
Choice” argues that too
much choice makes
people unhappier!
“Materialistic, Conspicuous
spending, Immediate
gratification, Denial,
Ignorance, Hypocrisy”

19. CHAPTER 8 : INSTITUTIONS
Need to develop discipline:
1.Maintain fiscal discipline
2.Reduce economic inequality
3.Effectively govern economic markets
4.Include broader metrics

20. PART THREE

21. CHAPTER 9 : MANIFESTO of ENOUGH
"We need to internalize a sense of
responsibility to others, including
those not yet born, in order to restore
the moral fibre that is needed for
market capitalism to deliver social
well-being.“
- Diane Coyle -

22. DISCUSSION
Current
Obstacles
Politics becoming managerial
competence
Lack the analysis (besides GDP) &
institutions to address economic
and social challenges
Creating effective institutions for
debating critical issues (besides G20,
OECD)
Main Issues
i.Human’s frailty - ‘HAPPINESS’
ii.Technology & Climate change
iii.SECURITY for rapidly aging
population
iv.Increasing INEQUALITY
v.TRUST for economies, government
& societies collapsing

23. Conclusion
In The Economics of Enough, Diane Coyle discusses ways in
which government policy and the actions of individuals and
private companies can better serve society in the long term.
Beyond the proximate impact of the 2008 economic crash, the
developed world is also facing mounting pressure from the need
to care for an aging population, the erosion of public trust in
institutions, and, particularly in the United States and Great
Britain, from growing economic inequality. Meanwhile, the
entire world must determine how to deal with the threat of
climate change.
Book Review – The Economics of Enough

24. Thank you for your kind attention
21st of November 2013
FIN960 Financial Economics - PhD Mixed Mode
-Adam Muza Muhayen-