Excellent critique of economy

A High Price for Abundant Living: The Story of Capitalism Henry Rempel. Herald Press, 2003. 307 pages.

In an accessible style, Henry Rempel explains the key workings of our economy and its relationship to the global economy. Using what he calls “sacred values,” he critiques these economic features and proposes ways in which our economy can be reformed. Throughout, he critiques our society’s “worship of abundance.” Materialism drives our economic system and he argues it drives us away from sacred values such as caring relationships with neighbours and the environment.

This is an important book for two reasons. First, it provides a clear explanation of the function and dysfunction of our economy. Rempel explains the function of our economy by drawing primarily on neo-classical microeconomic theory. For instance, firms seek to maximize profits by meeting consumer demand. Where markets are competitive, consumers benefit from a low price. Rempel also explains the dysfunction of the system. If a market is not competitive then large firms raise their profits at the expense of consumers through strategies such as advertising and collusion. In this case it is firms, not consumers, that are driving the system.

A second reason why this book is important is that it uses a series of sacred values to critique our economic system and considers ways to reform the economy in light of these values. For instance Rempel argues that the excessive power of large corporations must be addressed so consumers can make free decisions and face fair prices. He suggests the system can be reformed through: enhancing market competition, loosening corporate director liability limits, reducing CEO salaries, reforming corporate governance and educating consumers about the advantage of local shops.

This book is an excellent source to understand our national economy and its relationship with the global economy. It provides a useful critique and helpful ideas for reform drawing on sacred values.

Jerry Buckland, an economist, teaches International Development Studies at Menno Simons College and attends River East MB Church, Winnipeg.