''Filthy Lucre: Economics for People Who Hate Capitalism'' is a 2009 book by Canadian philosopher

Joseph Heath Joseph Heath (born 1967) is a Canadian philosopher. He is professor of philosophy at the University of Toronto, where he was formerly the director of the ''Centre for Ethics''. He also teaches at the School of Public Policy and Governance. He ...

. The book is organized around what Heath claims are twelve fallacies or myths associated with economics, six of which are common on the left, and six of which are common on the right. It considers ideas like that the government should get out of the way of markets; that competition and Adam Smith’s

invisible hand The invisible hand is a metaphor used by the British moral philosopher Adam Smith that describes the unintended greater social benefits and public good brought about by individuals acting in their own self-interests. Smith originally mentio ...

improve efficiency; the 'psychopathic' nature of

corporations A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and ...

; and the inevitability of capitalism's collapse. A United States edition of the book was released in 2010 under the title ''Economics without Illusions: Debunking the Myths of Modern Capitalism''. The book is one of an increased number on the topics of capitalism and finance that were published in the wake of global economic downturn beginning in 2008.

Overview

The book is intended to clarify core ideas in economics which he feels are systematically misunderstood. As in his previous bestseller ''

The Efficient Society ''The Efficient Society: Why Canada is as Close to Utopia as it Gets'' is a book by Canadian philosopher and author Joseph Heath. First released in 2001, the book is Heath's attempt to explain why Canada 'works'. He argues that Canada's successe ...

'', Heath argues that the government should operate only in markets where a

collective action problem A collective action problem or social dilemma is a situation in which all individuals would be better off cooperating but fail to do so because of conflicting interests between individuals that discourage joint action. The collective action proble ...

occurs and not in markets where this problem is absent (where it is a

race to the bottom Race to the bottom is a socio-economic phrase to describe either government deregulation of the business environment or reduction in corporate tax rates, in order to attract or retain usually foreign economic activity in their jurisdictions. While ...

not a race to the top). In these good-competition markets Heath defends

price gouging Price gouging is a pejorative term used to describe the situation when a seller increases the prices of goods, services, or commodities to a level much higher than is considered reasonable or fair. Usually, this event occurs after a demand or ...

, outsourcing and

free trade Free trade is a trade policy that does not restrict imports or exports. It can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold ...

(criticizing

price-fixing Price fixing is an anticompetitive agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given ...

, trade protectionism and

fair trade Fair trade is an arrangement designed to help producers in developing countries achieve sustainable and equitable trade relationships. The fair trade movement combines the payment of higher prices to exporters with improved social and envir ...

). In bad-competition markets Heath argues that by risk-pooling the government provides a natural and optimal solution for everyone. He defends the free market against the lump of labour argument, arguing that increases in efficiency are win-win situations despite

job loss Unemployment, according to the OECD (Organisation for Economic Co-operation and Development), is people above a specified age (usually 15) not being in paid employment or self-employment but currently available for Work (human activity), w ...

and other consequences. Likewise he describes international trade as non-exploitative.

Trade specialization The division of labour is the separation of the tasks in any economic system or organisation so that participants may specialise (specialisation). Individuals, organizations, and nations are endowed with, or acquire specialised capabilities, and ...

increases efficiency thereby increasing the price value of one's labour. This is because the price value of labour is a function of the efficiency of an economy. In the book Heath criticizes the idea that tax-paying is inherently different from consumption, and that the idea of a tax freedom day is flawed:

It would make just as much sense to declare an annual "mortgage freedom day", in order to let mortgage owners know what day they "stop working for the bank and start working for themselves". ...But who cares? Homeowners are not really "working for the bank"; they're merely financing their own consumption. After all, they're the ones living in the house, not the bank manager.

References

2009 non-fiction books Books about capitalism {{Econ-book-stub

Overview

See also

References