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Preface————Social Economies：How Society Shapes and is Shaped by Economic Thinking
The author and literary critic Dorothy Parker once suggested, “If you have any young friends who aspire to become writers, the second greatest favor you can do them is to present them with copies of The Elements of Style. The first greatest, of course, is to shoot them now, while they’re happy.” Replace “writers” with “economists” and “The Elements of Style” with “the leading introductory economics textbooks” and you get a sense of why I wrote this book.
What’s wrong with typical introductions to economics? They’re too narrowly focused—often ignoring the many economic subfields that overlap with social and biological sciences. They miss much of the interesting research taking place there that is uncovering hidden truths about how economies interact with society. They tend to be heavy on formalization and theory, abstracting from what is most useful about economics for non-economists. Abstraction and simplification have their place but something is lost in the process—there’s an opportunity cost.
This book can serve as an introduction to a broader economics, one that is multidisciplinary, with a strong social science influence. We are not alone in taking this path—leading economists are publishing cutting edge research in top journals, using ideas and techniques from a host of related disciplines (just as they borrow from economics), research that is cited liberally throughout this book.
My focus is on the intersections of economics with a range of social sciences—sociology, psychology, philosophy—and biological science. Taking this approach improves our understanding of how economies work, and how they can best serve individuals and society. It also brings economics closer to its roots—after all, economics began with a professor of moral philosophy.
So, maybe the greatest thing you can do for your friend—and yourself—i
s study economics from a social science perspective. If you want to know what economies are about, why economies work the way they do, then study the overlap of economics with related disciplines. In other words, take a liberal arts approach. Then pick up a leading economics textbook.

Contents
Part I Values and Views
1 An Expanded View3
2 Society Decides9
2.​1 The Purpose of Economic Systems10
2.​2 A Further Question:​ How Far?​15
2.​3 Social Science Influence17
2.​4 Psychology:​ Behavioral Economics18
2.​5 Economic Sociology:​ Group Dynamics21
2.​6 Philosophy23
2.​7 Biological Sciences24
2.​8 Concluding Comments26
References26
3 One-Handed Economists:​ Paradigms and Ideologies29
3.​1 Paradigms32

Ideology33
3.​3 Neo-classical, Mainstream Economics34
3.​4 Concluding Comments41
References41
4 Power and Purification:​ Marxists and Buddhists43
4.​1 Marxist Economics43
4.​2 Buddhist Economics50
4.​3 Concluding Comments56
References56
5 Feminist and Ecological Alternatives59
5.​1 Feminist Economics60
5.​2 Ecological Economics65
5.​3 Concluding Comments71
References71
6 Moral Foundations:​ Rights and Obligations in Markets75
6.​1 Morality of Markets:​ Three Approaches79
6.​2 Obligations in Practice84
6.​3 Concluding Comments88
References88
7 Everything for Sale:​ New Markets91
7.​1 Extension of Market Principles93
7.​2 A Market for Kidneys96
7.​3 A Market for Military Service104
7.​4 Concluding Comments109
References110
Part II Goals
8 GDP, a Cautionary Note115
8.​1 Why GDP Is Important And why it Is Not117
DP, Beyond the Headlines119
8.​3 Neglected Value122
8.​4 Alternative Measures123
8.​5 Concluding Comments126
References127
9 For the Long-Haul:​ Sustainable Prosperity131
9.​1 Sustainable Prosperity133
9.​2 The Social Fabric136
9.​3 Quality over Quantity139
9.​4 Concluding Comments145
References146
10 A Right Livelihood:​ Meaningful Employment149
10.​1 Employment and Meaning151
10.​2 Unemployment154
10.​3 Policy Responses158
10.​4 Concluding Comments160
References161
11 Economic Freedom165
11.​1 The Meaning of Economic Freedom166
11.​2 Other Conceptions of Economic Freedom172
11.​3 Concluding Comments174
References175
12 Profits:​ The Purpose of Business?​177
12.​1 Constellation of Interests178
12.​2 Shared Value182
12.​3 Goals vs.​ Purpose186
12.​4 Ownership and Property Rights187
12.​5 Risky Business188
Concluding Comments191
References192
13 Incentives and Rewards195
13.​1 Why Unequal?​197
13.​2 A Problem?​ Or a Benefit?​199
13.​3 Just Get an Education204
13.​4 Concluding Comments206
References207
14 Optimal Inequality209
14.​1 An Additional Consideration:​ Discrimination213
14.​2 The Macro View217
14.​3 Tyranny of Merit?​219
14.​4 Optimal Inequality220
14.​5 One More Approach223
14.​6 Concluding Comments225
References225
Part III Social Influences
15 Unwritten Rules:​ Social Norms and Customs229
15.​1 Self-Interest and Its Limits230
15.​2 Cooperation233
15.​3 Trust and Honesty236
15.​4 Fairness241
15.​5 Evolutionary and Biological Foundations244
15.​6 Concluding Comments246
References246
16 Written Rules:​ Religion249
16.​1 A Sometimes Complicated and Hidden Relationship252
16.​2 Non-Christian Religions258
16.​3 Religion and the State259
16.​4 Religion and Business260
16.​5 Concluding Comments261
References262
17 Family Structure:​ Marriage and Children265
17.​1 Social, Technological, and Legal Changes267
17.​2 Two More Considerations:​ Time with Children and Housing Costs272
17.​3 Other Developed Economies273
17.​4 In Developing Economies274
17.​5 Economic and Social Implications275
17.​6 Policy Responses277
17.​7 Concluding Comments279
References279
18 Parents:​ Nature and Nurture283
18.​1 Biological Connections285
18.​2 Genetic Influences287
18.​3 Environment and Gene Interaction290
18.​4 Environment291
18.​5 Concluding Comments297
References299
19 Community303
19.​1 Community and Social Capital304
19.​2 When Social Capital Declines310
19.​3 What Explains the Decline of Social Capital?​311
19.​4 Contributing to Inequality and Immobility312
19.​5 Creating Social Capital314
19.​6 Concluding Comments316
References316
20 And Lastly—Concluding Comments319
Author Index325
Subject Index327