Mindful Economics

2 comments September 24th, 2007

By Rowan Wolf

I must say that I never thought I would enjoy reading an economics book, but one has come to my attention that is just that - a enjoyable and interesting read. The book is Mindful Economics: Understanding American Capitalism and Alternatives by Joel Magnuson. I want to clarify up front that Joel Magnuson is a fellow faculty member at Portland Community College. I knew him in name only until he reached out to me about this book. Since then we have talked via email and in person several times. I do feel that I am offering my honest appraisal of his work.

The first part of the book takes the reader on a cogent journey through some basic economic theory in a way that is accessible. Magnuson then examines two nexuses of capital: households, corporations and the market system; and labor unions and business associations. He then moves into the role that government has played in the ascent of capitalism in the U.S. These build a story that launches us into the world of finance in its various forms and ultimately brings us to the current capitalist form.

Now if this sounds like a snore thus far, it certainly is not. Magnuson tells a story that traces the connections of the development and transformation of U.S. capitalism. I certainly do not have the economics background to tell the cogent story that Joel Magnuson weaves. This historical economic tale includes the human side (and costs) of the development of what I have referred to as “hegemonic capitalism” though he does not use that term.

Joel Magnuson approaches this topic holistically with the focus on the human, social and political implications of the development of American capitalism. I learned some things I did not know in the process of reading this book. I knew of some of the changes and forms that capitalism has taken, but did not have the players and details which Magnuson supplies.

He goes into great detail about the construction and operation of the financial system, and how even “instabilities” are organized to maximize the gains and power of the capitalists. All of this sets the stage for Magnuson’s proposal of what he refers to as “Mindful Economics.” The title itself is nudging the savvy reader towards Joel Magnuson’s “bias” in his work - namely Buddhism. While the work is not Buddhist in a religious sense, that approach certainly colors his work.

Magnuson’s idea of mindful economics is that we can transform this social institution by changing the goals and center of the economy and how it works. In other words, we can reclaim the institution and restructure it to work for the betterment of all and the planet by changing the goals of capital and economic activity. While I generally agree with this argument, I do believe that there is a basic problem with what Magnuson proposes - time. Magnuson seems to present a belief of a relatively gentle and long term transition of the economic system to serve the higher good. I see this as a problem as the I personally don’t think that we have that kind of time. However, the premise is good, though I believe the transition will be much quicker because the current system is headed for either a total loss of the middle class and the peonage of the masses, or a chaotic collapse.

Magnuson argues at the beginning of the book, and then again Chapter 12, the fundamental incompatibility of capitalism and democracy. I must say that I found it affirming that a point I have argued for years was being seriously dealt with by an economist. He details this incompatibility in discussing how the economy needs to change to actually be reinforcing of true democracy rather than inimical to it. Magnuson offers a direction and a model for that change with his “mindful economics.”

If you want to learn more about the development and functioning of U.S. capitalism, and an interesting approach to a different economic focus and organizations, take the time to read “Mindful Economics” by Joel Magnuson. For sure check out the Mindful Economics web site. In addition to more information about the book, Magnuson offers some interesting resource links.