economy
‘Make people dream’: how to build an economy for the common good
Economist Prof Mariana Mazzucato says governments must ‘get back their mojo’ and believe they can change the world
TL;DR
- Governments need a clear vision and purpose, not just slogans about economic growth.
- Mariana Mazzucato proposes a 'common good economy' to tackle inequality and climate crises.
- Governments should actively shape markets rather than being passive fixers.
- The 'common good' is a shared objective, distinct from 'public goods' which are market corrections.
- Neoliberalism led to people being treated as consumers instead of citizens, weakening the public sphere.
- Innovation comes from both public and private sectors; the internet is an example of government-led innovation.
- Reliance on consultants weakens governments and warps economies.
- Mazzucato believes governments are not penalized by bond markets for smart investment strategies.
- Current economic models treat climate change as externalities or a 'tragedy of the commons', rather than a design objective.
- The problem is not growth itself, but growing in the wrong way; capitalism can be part of the solution.
- Pre-distribution, ensuring fair shares from investments, is better than redistribution.
- Community involvement, shared spaces, and collective structures are vital for human flourishing and joy.
- Investing in public amenities like soccer pitches and libraries can improve health, reduce crime, and ultimately cost the state less.