Economics - Innovation - Inclusive Growth - Public Purpose

The Value of Everything

Modern economies reward activities that extract value rather than create it. This must change to insure a capitalism that works for us all.

In this scathing indictment of our current global financial system, The Value of Everything rigorously scrutinizes the way in which economic value has been determined and reveals how the difference between value creation and value extraction has become increasingly blurry. Mariana Mazzucato argues that this blurriness allowed certain actors in the economy to portray themselves as value creators, while in reality they were just moving existing value around or, even worse, destroying it.

The book uses case studies–from Silicon Valley to the financial sector to big pharma–to show how the foggy notions of value create confusion between rents and profits, a difference that distorts the measurements of growth and GDP.

The lesson here is urgent and sobering: to rescue our economy from the next, inevitable crisis and to foster longterm economic growth, we will need to rethink capitalism, rethink the role of public policy and the importance of the public sector, and redefine how we measure value in our society.

"A stimulating analysis of the underlying causes of inequality and growth which forces us to confront long-held beliefs about how economies work and who benefits."


Martin Wolf, Financial Times

"Mazzucato’s mission is to overturn the now dominant neoclassical theory of value. Mazzucato is seeking to recreate the dynamic public-private interaction – and the spirit of adventure – that led to triumphs such as the moon landings."


George Eaton, New Statesman

"Mazzucato is fast emerging as one of the world’s leading public intellectuals… [she] has offered the left a positive vision of growth based on innovation and profit-sharing, rather than sterile and counter-productive analysis based on the politics of resentment and expropriation."


Spectator

"Mazzucato’s trenchant analysis is a compelling call to reinvent value to achieve the world we all want.”


Nature

"A timely book about crucial concepts that have slipped out of mainstream discourse. An exposé of how value extractors and rent-seekers have been masquerading as value creators in the global economy.”


Prospect

"A timely book about crucial concepts that have slipped out of mainstream discourse. An exposé of how value extractors and rent-seekers have been masquerading as value creators in the global economy.”


Prospect

"An accessible academic treatise worth understanding.”


Kirkus Rewiews

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Value of Everything in the Media

Summer books of 2018: Economics

Summer books of 2018: Economics

“In this thought-provoking book, Mariana Mazzucato, professor at University College London, argues that it is far too easy for those operating in the contemporary market economy to get rich by extracting value from those who actually create it, not by adding it themselves. To understand this, we need to return to the question with which economics began: what creates value? When we answer this properly, we will realise that an important part of the answer is: government rather than much of contemporary finance.” Martin Wolf

Challenging the way our society matches risks and rewards

Challenging the way our society matches risks and rewards

The Value of Everything will rekindle a much-needed debate about the kind of world we really want to live in. The author argues that we must revisit the basics. She dissects the status quo and chal- lenges how our society matches risks and rewards.” Henry Friesen

Yes, Government Creates Wealth

Yes, Government Creates Wealth

“Economics has never accepted the idea that the public sector creates wealth. But it does—and acknowledging that can lead to sweeping change.”

Shaping the stories that rule our economy

Shaping the stories that rule our economy

“The economy we want to build must recognize increasing the value to and for humans as the goal. To build that economy, we need a strenuous engagement with the questions Mariana Mazzucato asks in this book, an engagement deeply informed by the history of economic thought and how we got where we are today. I found this book enormously stimulating. You will, too. Highly recommended.” Tim O’Reilly

Parasitic Capitalism Exposed

Parasitic Capitalism Exposed

“Mariana Mazzucato’s new book is a detailed exposé of the parasitic character of modern capitalism, drawing on Karl Marx’s theory of the source of value creation. But understanding the law of value is only a first step to providing an alternative to a system that cannot overcome its inevitable tendency for periodic crises and which needs to be overthrown” Peter Taaffe

Business Books to Watch in September

Business Books to Watch in September

“In this prescient book, a renowned economist exposes how modern capitalist economies are increasingly rewarding businesses for the amount of wealth they capture for themselves rather than the value they add to the economy—and why we need to instead build a capitalism that works for us all.”

Business Book of the Year 2018 — the longlist

Business Book of the Year 2018 — the longlist

“Mariana Mazzucato’s thought-provoking The Value of Everything, which argues for a more sustainable form of capitalism, “pushes us to get away from the simplistic creed that markets are always good and governments always bad”, according to the FT review.” Andrew Hill

Educational reform for Egypt 2030

Educational reform for Egypt 2030

“As Mariana Mazzucato, professor in the economics of innovation and public value at University College London, reiterated in her latest work, The Value of Everything, innovation is a public-private collaborative endeavour.” Haro Karkour

Too Big to Fail to Catch the Irony

Too Big to Fail to Catch the Irony

The Value of Everything is not a beach read, but it’s an intelligent dose of critical thinking about a topic where ignorance all but guarantees we’ll end up being played. Take the time to get smart about it.”Heather Seggel

How To Fix Stagnant Wages: Dump The World’s Dumbest Idea

How To Fix Stagnant Wages: Dump The World’s Dumbest Idea

“The book,The Value of Everything: Making and Taking in the Global Economy […] offers a fundamental re-think of what constitutes real value in the economy. It traces the origins of current economic thinking from its origins in the seventeenth century to the growth of the financial sector and the financialization of the 21st-century economy. It explains how the economy steadily shifted from creating value for the benefit of all to the extraction of value for the owners of assets, and the consequences in terms of steady economic decline and worsening income inequality.” Steve Denning

When is capitalism going to end? Making a case for a new economic chapter

When is capitalism going to end? Making a case for a new economic chapter

“Another influential writer is Mariana Mazzucato, of University College London. In her new book, The Value of Everything, she excoriates the global financial industry. We need to rethink our ideas on value, and how financialisation has turned us away from value creation to value extraction.” Hans Pienaar

Booklist review

Booklist review

“Since the economic crisis in 2008, Mazzucato notes that the rise of entrepreneurship, along with the past deregulation of financial industries, is fueling the fire of economic inequality and an economy without value. ” Jennifer Adams

“El Valor de Todo”: Mariana Mazzucato desnuda el “capitalismo parasitario”

“El Valor de Todo”: Mariana Mazzucato desnuda el “capitalismo parasitario”

“En ese sentido, el libro de Mazzucato instala una pregunta que es de plena actualidad en Chile donde la rebaja de impuestos se presenta como la gran vía para incentivar el crecimiento. ¿Por qué no se exige como condición que ese beneficio se dirija a empresas productivas que creen empleos y no se vaya a sociedades que solo ganan en la “pasada”?” Juan Andrés Guzmán

KIRKUS REVIEW

KIRKUS REVIEW

“A British economics professor is debunking again; this time, her target is the conventional wisdom that so-called wealth creators deserve to accumulate massive riches.”

Guaranteed jobs may not solve the Democrats’ bigger problem with many voters

Guaranteed jobs may not solve the Democrats’ bigger problem with many voters

“Economist Mariana Mazzucato examines this problem in her book, “The Value of Everything.” Her case studies show how, especially in banking, tech and Big Pharma, riches are found in moving money around, looting companies and gaining financial advantages by manipulating public policy.” Jon Talton

Economists Are Evolving, But Old-School Textbooks Aren’t

Economists Are Evolving, But Old-School Textbooks Aren’t

“The trouble isn’t the latest research, but the zombie ideas that economists keep pushing. Indeed, as economist Mariana Mazzucato argues in her new book, “The Value of Everything,” ideas like the welfare theorems exert a powerful unconscious influence over the framing of a lot of policy analysis.” Mark Buchanan

Trump is a passing problem in the US – Brexit is not

Trump is a passing problem in the US – Brexit is not

“Mazzucato’s mission is to overturn the now dominant neoclassical theory of value. In the mid-19th century, she explained, an intellectual revolution occurred: rather than value determining price, price began to determine value. Until the early 1970s, “most of the financial sector wasn’t actually included in GDP. It was seen as a transfer of existing value, just as social security payments aren’t included in GDP.” ” George Eaton      printed version

The Value of Everything by Mariana Mazzucato – how to save capitalism

The Value of Everything by Mariana Mazzucato – how to save capitalism

“Someone should make a musical out of this book. That is quite unlikely, I grant you, but not as unlikely as it sounds. In 1893 the Savoy theatre staged Gilbert and Sullivan’s penultimate operetta, Utopia, Limited […] It is time to rework the idea and Mariana Mazzucato is a candidate to write the libretto.” Philip Collins   pdf version

How to retool our concept of value

How to retool our concept of value

“Mazzucato’s trenchant analysis is a compelling call to reinvent value as a key concept to help us achieve the world we all want.” Robert Costanza

Perils of the free market

Perils of the free market

“Mariana Mazzucato offers an exposé of how value extractors and rent-seekers have been masquerading as value creators in the global economy. And, furthermore, how the conventional wisdom has indulged them in this.” Fran Boait

What CEOs are reading: April 2018

What CEOs are reading: April 2018

“[…]the normally iron-clad security of shareholder value is challenged as a material motivator, a theme further explored by Mariana Mazzucato in The Value of Everything, Makers and Takers in The Global Economy, who argues that we urgently need to rethink where wealth comes from to heal a sick system.” Richard Kilgarriff

VALUE OF EVERYTHING ON VIDEO/AUDIO

Bloomberg

Understanding the Changing Calculation of Value

5×15 Talk

Mazzucato’s presentation talk at the 5×15 event

RSA

Keynote: Redefining Economic Value

CHANNEL 4 NEWS

A ‘parasitic’ system in need of change

Bloomberg

Rethinking Capitalism to Create Global Value

The Causes of the 2008 Financial Crisis and the Signs of a Crisis to Come

The Causes of the 2008 Financial Crisis and the Signs of a Crisis to Come

“Economist Mariana Mazzucato, author of the new book “The Value of Everything: Making and Taking in the Global Economy” digs into the nuts and bolts of what cause the 2008 financial crisis. She also explains how there are troubling signs of another crisis to come sooner than we’d hope.”

Who Creates Value in an Economy?

Who Creates Value in an Economy?

“Economist Mariana Mazzucato, argues that the reason is that economic policy continues to be informed by neoliberal ideology and its academic cousin, “public choice” theory, rather than by historical experience.” Listen

Surveillance: Rogoff & Mazzucato On The Next Crisis

Surveillance: Rogoff & Mazzucato On The Next Crisis

“We start off on a segment from our TV show with Ken Rogoff, Harvard Professor & Former IMF Chief Economist, and Mariana Mazzucato, University College London Professor & Author of “The Value of Everything.” “

BBC Radio 4 – Start the Week: Dark Satanic Mills

BBC Radio 4 – Start the Week: Dark Satanic Mills

“The economist Mariana Mazzucato is calling for a reform of capitalism, to replace taking with making. She argues that the global economy has become a parasitic system in which value-extraction is more highly rewarded than value-creation.”

Value of Everything Excerpts

It’s a magic number

It’s a magic number

“By losing our ability to recognize the difference between value creation and value extraction, we have made it easier for some to call themselves value creators and in the process extract value.”   pdf version

Book Talks for Value of Everything

What’s Now San Francisco – Could Tech Rethink the Value of Data and Who Profits from It?

What’s Now San Francisco – Could Tech Rethink the Value of Data and Who Profits from It?

Capgemini’s Applied Innovation Exchange, 425 Brannan St., San Francisco, CA 94107

Please RSVP here

One way to understand the plight of the tech world right now is to pull back and understand the field of economics in the last 400 years. For much of that time the field has debated where value in the economy actually comes from – such as land, labor, capital. And crucially, what the difference is between value creation and value extraction. According to economist Mariana Mazzucato, our featured guest at September’s What’s Now: San Francisco, it is necessary first to publicly debate what types of activities really add value to our economy—and how to limit value extraction that masquerades as wealth creation—so that we can create a new form of capitalism that works for us all, including in the tech industry.

Bloomberg BETA

Bloomberg BETA

Pier 3, The Embarcadero, San Francisco, CA 94109

Please RSVP here

Discussion with Tim O’ Reilly followed by audience Q&A and book signing.

Open Society Foundation – The Value of Everything: Making and Taking in the Global Economy

Open Society Foundation – The Value of Everything: Making and Taking in the Global Economy

Open Society Foundations, 224 West 57th Street, New York, NY 10019

Please RSVP here

Moderated by Jeff Madrick – author, director of the Bernard L. Schwartz Rediscovering Government Initiative, and senior fellow at The Century Foundation.
The 2008 global financial crisis revealed that modern economies reward activities that extract economic value rather than create it.  Join us for a discussion with Mazzucato as she demonstrates how companies from Silicon Valley to the financial sector to big pharma have used foggy notions of value to create confusion between rents and profits—thereby allowing themselves to be portrayed as value creators, while in reality they are merely moving existing value around or, even worse, destroying it. Only by debating and ultimately reclaiming the true meaning of value will it be possible to generate a fairer economy that benefits all of society. A reception, with light refreshments, will be held from 5:30–6:00 p.m.

World Bank EFI Chief Economist Learning Seminar

World Bank EFI Chief Economist Learning Seminar

1818 H Street NW, Washington, DC 20433

Please RSVP to Brooke.Parsons@hbgusa.com with the following information: name as it appears on ID, email address, affiliate organization.

Today, the financial sector and the ‘financialized’ world breeds a mentality that distorts economic growth and increases wealth disparity. Top executives choose to spend a greater proportion of profits on share buy-backs rather than on investing in the long-term future of the business. They call it value creation but the reality is often the opposite: value extraction. So who decided that they are creating value? What definition of value is used to distinguish value creation from value extraction, or even from value destruction?

RSA

RSA

London, United Kingdom – Presentation of the book The Value of Everything with RSA Chief Executive Matthew Taylor.

Resolution Foundation

Resolution Foundation

London, United Kingdom – In conversation with Lord Willetts, Executive Chair of the Resolution Foundation, on the new book The Value of Everything. “Wealth creation in the 21st century: who is and isn’t a doing it?”

LSE Public Lecture

LSE Public Lecture

London, United Kingdom – ‘The Value of Everything: making and taking in the global economy’ Podcast

Professor Mazzucato with the first copy of her book The Value of Everything at the Institute for Innovation and Public Purpose.