One of Cambridge Sustainability’s Top 50 Books for Sustainability, as voted for by over 3,000 senior leaders from around the world, «For the Common Good» is a wide-ranging critique of contemporary economic policies, covering international trade, population, land use, agriculture, industry, labour, taxation and national security. Although it sets out to challenge conventional economics, it is written in an accessible style and largely avoids speaking in economic jargon and theoretical abstractions.
The authors challenge the two assumptions that support the economic theory of human nature (‘homo economicus’). First, they question the assumption that human wants are insatiable, arguing that they can be shaped by cultural, psychological and social factors. Second, they critique the law-like status of the principle of diminishing marginal utility. This view of humans tends to equate gains in society as a whole with the increases in goods and services acquired by its individual members, but it says nothing about the changes in the quality of the relationships that constitute that society. The authors therefore propose a shift from economics conceived as ‘crematistics‘ (maximisation of short-term monetary gain) to the sort of economics Aristotle called ‘oikonomia’ (management of a household aimed at increasing its use value over the long run for the community). Such a conversion entails a paradigm shift from radical individualism to the notion of a «person-in-community,» as well as a fundamental shift away «from cosmopolitanism to communities of communities.»
When For the Common Good appeared in 1989, reviews were rather mixed. Some called it «an endlessly provocative tour-de-force», while others rated it «refreshing and provocative.» But the book was scorned by academics. The scholarly reviews were full of foul adjectives like «ponderous» and «inconclusive.» One reviewer even called it «dangerous.» Many academic journals simply ignored it.
The varied response to the book seemed appropriate considering the authors’ goal to deconstruct neoclassical economic theory and set forth a more holistic model, a model that accounts for the individual, the community, and the natural world.
In the first half of the book, Daly and Cobb critique the assumptions and theoretical fallacies of contemporary economics, while the second half explores policy changes for a community-based, ecologically balanced economy. The book also includes an appendix where they construct an «Index of Sustainable Economic Welfare» as an alternative to Gross National Product (GDP) as a measure of economic well-being.
DIFFERENT ANGLES OF THE DEBATE
In their arguments, they cover wide-ranging aspects of contemporary economic policies including: international trade, population, land use, agriculture, industry, labour, taxation and income, and national security.
Their chief argument throughout concerns the need for realigning government and social structures toward smaller social and economic units. In their discussion of free trade and the international marketplace, for instance, they argue that it becomes difficult, if not impossible, for governments to perform their essential non-market functions when economic power is centralized at the global level, while political power is decentralized to national and local levels. For the system to function in the interests of community, economic and political power must be in balance at any given system level.
The book emphasizes the importance of aligning population policies and land use planning with ecological constraints, promoting sustainable agricultural practices, and preserving natural habitats to maintain ecological balance.
They propose reforms that encourage worker participation in management and ownership, fostering a sense of responsibility and investment in the enterprise’s success. Such involvement can lead to more equitable income distribution and enhance job satisfaction.
The authors suggest restructuring taxation to discourage environmental degradation and excessive resource consumption. Additionally, they advocate for reducing military expenditures, redirecting resources towards initiatives that enhance true national security, such as education, healthcare, and infrastructure development.
Daly and Cobb claim that the emerging global society must develop democratically controlled institutions at all levels: international, national, and local. It also needs to create a decentralizing context for economic activities that returns institutional control to citizens, roots economic interests in local soil, and re-establishes some sense of human community.
The authors are somewhat tentative in discussing how their programs may be put into practice suggesting five possible steps, for instance: significant university reforms, local community-building, a relatively self-sufficient national economy, bringing the question of scale into public consciousness, and changing the way we measure economic success.
In general, they concede, the first step in any serious change will have to involve education and consciousness-raising as the all-important notions of scale and sustainability need to be deeply rooted in public awareness. The dangers of free trade dogma and the fallacies of measuring economic welfare according to GNP will also have to be made evident, they observe. Above all, steps need to be taken toward envisioning a future built on the principles of community, harmony with the environment, and indefinite economic sustainability.
As described by the Utne Reader, what is most impressive about For the Common Good is the way Daly and Cobb give «a compelling theoretical edge to the tenets of environmental faith». The magazine listed Herman Daly among their «100 visionaries» for his «careful,» «lucid» and «compelling» work in economics.
CONCLUSION
Decades after its publication, «For the Common Good» remains strikingly relevant, resonating with today’s conversations on sustainability, social equity and environmental responsibility. The book’s call for redefining economic success, not by mere growth, but by the well-being of communities and ecosystems, feels more urgent than ever. As current movements advocating for corporate social responsibility, sustainable development goals, and the circular economy gain momentum in worldwide discussion forums and platforms, Daly and Cobb’s vision finds new life. Their critique of unchecked globalization and emphasis on localism resonate even more in light of recent global challenges that have highlighted the vulnerabilities and fragility of supply chains and global systems exposing the need for resilience, self-sufficiency and a deeper connection to place and to a community. the importance of resilient local communities.