Rethinking Value: A Look at Mark Carney's "Value(s)"

Beyond Market Fundamentalism: Values Shape Value

Mark Carney's "Value(s)" offers a refreshing perspective in an era often dominated by simplistic thinking. Carney argues that value isn't simply derived from price, but rather, is deeply rooted in our values. This challenges the prevalent notion of market fundamentalism, which reduces human worth to mere self-interest.

Carney echoes Pope Francis's analogy of wine and grappa. Wine, rich and complex, represents humanity's multifaceted nature. Grappa, pure alcohol, symbolizes the market distilled down to pure self-interest. The challenge, as Pope Francis puts it, is to "turn the grappa back into wine," to reinfuse humanity back into the market.

Carney's Proposed Values: A Blend of Function and Purpose

Carney proposes a set of values to underpin a successful economy: dynamism, resilience, sustainability, fairness, responsibility, solidarity, and humility. These values blend both the mechanisms for a thriving society (fairness, responsibility) and the broader purposes of that society (creativity, protecting the vulnerable).

While commendable, this list raises the question of whether it fully captures the essence of value creation. Are these values the foundation of a flourishing society, or are they a consequence of something more fundamental?

The Missing Link: Individual Purpose and the Emergence of Social Value

Carney's framework seems to prioritize a broad social purpose, overlooking the crucial role of individual purpose. A society's values don't emerge in a vacuum; they arise from the daily lived experiences and aspirations of individuals.

Fortunately, Carney's subsequent discussion of Adam Smith hints at an understanding of this dynamic. He highlights Smith's concept of "mutual sympathy," where individuals form moral judgments through social interaction and a desire for positive regard.

This resonates with the idea that personal values, shaped through lived experience and social interaction, ultimately give rise to broader societal values. It's not the market that dictates value; it's the individuals within it.

Reclaiming Adam Smith: Beyond the "Invisible Hand"

Carney's portrayal of Adam Smith challenges the common caricature of him as a market fundamentalist. He emphasizes Smith's focus on human interaction and the development of moral sentiments as crucial components of a functioning society.

Carney rightly points out that Smith's "Theory of Moral Sentiments" explores how individuals develop moral judgments through social exchange. This nuanced understanding of Smith reinforces the idea that values emerge from the ground up, from the everyday interactions of individuals.

As Carney writes, summarizing Smith: "Humans are social animals who form themselves in action and interaction with each other across all spheres of their existence.”

A Promising Start

Carney's "Value(s)" prompts a crucial conversation about the true foundations of value. While his proposed framework might benefit from a greater emphasis on the role of individual purpose, the book offers a welcome challenge to the prevailing dogma of market fundamentalism. It encourages us to look beyond price tags and rediscover the deeper values that shape our world.