No to the “Common Good” Economy

 Samuel Gregg critiques Mariana Mazzucato's vision of the "Common Good Economy" in his review of her book. He argues that her proposals for state intervention and management of the economy risk stifling individual freedoms and lead to negative economic consequences.

1. Background of State Intervention:

There has been a growing trend in developed economies towards increased state intervention and industrial policy.

Mazzucato promotes a shift in economic focus towards achieving the "common good".

2. Mazzucato's Viewpoint:

Mazzucato suggests that economic policies should center around "collective value" rather than on principles like liberty and free markets.

She believes the state should be the primary force in directing economic activity and creating public value.

3. Role of Global Institutions:

Mazzucato calls for global entities, such as the World Bank, to have a stronger role in managing resources and finance at a global level.

Even while acknowledging their past failures, she suggests enhancing their power for collective action.

4. Philosophical Foundations:

The book discusses historical notions of the common good, citing philosophers like Aristotle and Aquinas, yet Greg critiques her interpretations and perceived omissions.

Gregg argues that her view lacks recognition of the importance of individual free choice, which should limit state power.

5. Economic Implications:

Mazzucato’s approach implies a top-down control of the economy that may lead to stagnation rather than innovation.

Gregg warns that her vision may replicate the financial and bureaucratic challenges currently seen in countries with heavy state involvement.

6. Human Behavior and Economics:

Gregg stresses that economic activities motivate individuals primarily for self-interest, not necessarily for moral incentives.

He emphasizes that economic prosperity often comes from individuals pursuing personal goals rather than from a desire to foster collective good.

7. Conclusion:

Gregg concludes that adopting Mazzucato's common-good economy would exacerbate current issues faced by several nations, including entitlement spending and slow growth.

He advocates for rejecting her approach in favor of preserving individual freedoms and market principles.

Samuel Gregg's critique serves as a warning against embracing a centrally directed economy, arguing for the importance of individual choice and free-market principles over state-controlled initiatives. 

https://www.city-journal.org/article/common-good-economy-mariana-mazzucato