The Invisible Heart: Economics and Family Values

Anyone economist whom the Wall Street Journal takes a swipe at is doing something right in my book. I don't recall the exact quote but the Journal says something like Folbre is a "feminist economist who studies family economics (socialism)." Folbre wonders aloud if the Journal believes families are necessarily socialist. Judging from their characterization of Folbre's work, and their endorsement of strict neoclassical econonmic theory in their editorial section, it appears that the Journal and other business and economic theorists of their ilk would prefer to simply call families names than deal with their true economic and moral value in the realm of capitalism.Folbre's thesis is that capitalism has been enjoying a "free ride" on families and communitites from very early on. She further argues that capitalism is changing the ways people and families concieve of themselves. Using memorable examples, she makes a convincing case for the inclusion of traditional women's work such as child rearing in such measures as the GDP. After all, don't corporations need smart well-trained workers? And don't smart well-trained workers grow up inside families who nuture, care, and educate them? Further, don't families and workers mostly pay for their training? Most economists are uncomfortable thinking about how the social and moral structure of society underpins capitalism. This is because they can't find ways to measure this "natural resource." Conservatives know that capitalism encourages radical individualism -- that's why they are always trying to impose "traditional values" on workers. Conservatives know that capitalism depletes people's sense of obligation and responsibility -- that's why they talk about it so much. What they don't talk about is that the encouragement of economic self-interest plays havoc with social reciprocity and moral standards. As Folbre points out, business contracts are almost meaningless in and of themselves. They are based on mutually accepted customs of reciprocity and obligation that have developed over the course of Western history. They are a simply a more elaborate version of the handshake.Witty, pithy, and astute, Folbre's "Invisible Heart" is the perfect antidote to inane blatherings of the Chicago School knuckleheads and their mealy-mouthed descendants.