When More Is Not Better: Overcoming America's Obsession with Economic Efficiency

The American democratic capitalist system is in danger due to an imbalance between economic prosperity and wealth inequality. This book argues that we must shift from treating the economy as a machine to viewing it as a complex adaptive system and seek a balance of efficiency with resilience. It provides advice for citizens, executives, policy makers, and educators to achieve this balance.

Format: Hardback
Length: 256 pages
Publication date: 29 September 2020
Publisher: Harvard Business Review Press

American democratic capitalism faces a significant threat, and it is crucial to explore ways to safeguard it. Over the past two centuries, the American economy has demonstrated remarkable resilience and growth. The combination of democratic governance and a capitalist system has fostered efficiency, driven by labor division, international trade, and scientific management of companies. By the time of the United States' bicentennial celebration in 1976, the American economy was widely regarded as the envy of the world.

However, since then, the landscape has undergone a dramatic transformation. The economic prosperity of the average American family has slowed to a crawl, while the wealth of the richest Americans has skyrocketed. This imbalance poses a serious threat to the American democratic capitalist system and our way of life.

In his insightful book, renowned business thinker Roger Martin identifies the root cause of the problem. We have mistakenly treated the economy as a machine, relentlessly pursuing efficiency as an inherent good. However, our obsession with efficiency has inadvertently shaped the economy, resulting in a shift from a broad middle class and smaller numbers of rich and poor to a greater share of benefits accruing to a thin tail of already-rich Americans. This shift is characterized by a Pareto distribution.

To address this challenge, Martin proposes a shift in perspective. We must cease viewing the economy as a perfectible machine and embrace it as a complex adaptive system that requires a fundamental balance between efficiency and resilience. This requires a holistic approach, where we focus on the overall while also addressing the individual components. We should strive for improvement rather than perfection, constantly tweaking and adapting our strategies to find sustainable solutions.

The book is filled with keen economic insights and provides valuable insights into the current economic landscape. Martin's arguments are grounded in empirical evidence and offer practical solutions for navigating the complexities of the modern economy. By adopting a balanced approach that emphasizes efficiency and resilience, we can safeguard American democratic capitalism and ensure its continued success for generations to come.

Weight: 532g
Dimension: 163 x 240 x 28 (mm)
ISBN-13: 9781647820060