Sociological Forum, VoL 21, No. 4, December 2006 (0 2006) DOI: 10.10M1~11206-006-9045-2

Book Review

The Moral Limits of Economic Growth

Amitai Etzionil

Published online: 5 December 2006

The Moral Consequences of Economic Growth. Benjamin M. Friedman. New York: Alfred A. Knopf, 2005.

In an erudite book, Harvard economist Benjamin Friedman argues that economic growth does not merely shower its beneficiaries with ma- terial goods but is also a moral blessing. Friedman readily acknowledges that his morality is hardly the same as the Christian Right's but has four cornerstones: democracy, mobility, opportunity, and tolerance. Call it lib- eral. Friedman presents a large variety of historical evidence to support his claim that there is a correlation between economic and moral growth, grant- ing some exceptions, most notably the formation of the liberal New Deal in a period of negative economic growth.

In the following pages, I point to a whole slew of important questions that Friedman's analysis brings to mind, and differ with him on several key points. However, I cannot stress enough that the book is full of keen histor- ical, cultural, economic, and social observations and encompasses a large variety of qualitative and some quantitative evidence. Moreover, the hefty volume does return us to a discussion about the moral implications of cap- italism and globalization that is far from over. Finally, even those who do not see the historical narrative in quite the ways Friedman does may be delighted to support the progressive social policies he advocates.

Friedman grants that liberal advances may occasionally help bolster economic growth; however, in his view, causality runs primarily from eco- nomic growth to liberal growth. This preference for economic factors over values as the driving force behind liberalization is reflected in his implicit rejection of Max Weber's thesis that changes in values drive both economic

'Department of International Affairs, George Washington University, Gelman 703,2130 H Street, N.W., Washington, D.C. 20052.

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become less content and less likal, not more so. In the following state- ment, which deserves to be cited in full and carefully examined, he argues

- ithat economic growthfdfilk the aspiration for "more": "By continually giv- -'.lqing mast people a sense of living better than they or their families have in

'the not very distant past, sustained economic growth reduces the intensity of their desire to live better than one mother. Ecommic growth satisfies the form of people's aspiration for 'more' that is possiMe for everyone to fulfill" @. 92). Here Friedman's mild economic determinism comes full cir- cle; economic growth drives b t h improved emnomic conditions and what people feel about them. Friedman does not buy the considerable body of data that shows that as people's economic conditions improve-once they pass a certain level-the* contentment does not rise (Etzioni, 2001: 5$78).

All this is not to deny that there is a correlation between economic growth and a measure of liberalism (e.g., compare today's Cnina to that of 30 years ago or afauent nations on average to impoverished ones), but ilt: leaves open the question of what precisely accounts for the correlation 0% possibly jointly drives both developments.

At one critical Friedman fully admits the power of a key c o m m u ~ nitarian thesis: "In surveys, most people say that their sense of satisfactio with their lives depends mast on the strength of their family relationships and personal friendships, or their health, or their education, or their reli- gious attachment, or their feeling of connection to a broader community beyond their family, or their sense of being engaged in purposeful and pro- ductive work, or even their everyday work environment" (p. 81). That is, a major determinant of human contentment, and hence the inclination to be liberal (as Erich F r o m has already argued in Escape From Freedom), is how well the social fabric is woven, rather than which reference group 'people choose. This line of analysis does not deny that economic conditions are a factor in determining human flourishing but argues that they have a rapidly declining marginal utility above a given level of wealth-granted, lthat level may rise over time and with cultural and value changes.

Friedman dismisses this liee of argumentation, after fairly presenting it, by stating, "The essential point is that how much income it takes to en- joy advantages like these [strong marriage, better health, security, etc.] is a relative matter, and the most obvious benchmark people have in mind when they draw such comparisons is their own past experience" (p. 82). That is, if some others you compare yourself with get more, you will want more-however much you have. I suggest the counter hypothesis that the more you get, the more you yearn for other, nonmaterial, "incomes," even if some people do become addicted to material possessions.

Even those who do not buy Friedman's analysis may embrace many of the economic policies he calls for. He favors heavily investing in

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The Moral Limits of Economic Growth 719

being, one much more willing to allow others to catch up-if one's satis- factions were driven by greater "investment" in relationships and culture, which require few economic resources. For instance, embracing a set of val- ues defined by voluntary simplicity (a moderate version of the countercul- ture) or a civic religion of communitarianism can serve as a normative coun- terweight to reference groups that spur people to work harder for goods they do not truly need. This in turn may release such goods to those who have not yet gained whatever creature comforts they require-without any sense of loss or sacrifice in other sectors of society.

As I said, Friedman leads us to re-examine many questions with which we have long struggled, so that even if we do not necessarily favor un- bounded economic growth or accept his mild economic determinism or liberal definition of morality, his analysis remains thought provoking and valuable.

REFERENCES

Etzioni, Amitai hours worked." Monthly Labor Re- 2001 The Monochrome Society. Princeton, view 123(7):26-31.

NJ: Princeton University Press. "Report on the American Workforcen Kirkland, Katie 1999 Washington, D.C.: Bureau of Labor 2000 "On the decline in average weekly Statistics.