Why read this book

To better understand how the modern economic system works and to be able to apply that knowledge to your own actions and choices.

To achieve this goal, let’s presume that people operate in two economic spheres: the market sphere and the non-market sphere (though these could also be called the monetary sphere and the non-monetary sphere, or the sphere of production and the sphere of consumption).

The most important part of the market sphere is what we call the free market, although today public institutions driven by tax and legal obligation constitute an increasingly significant group of actors. In turn, the main component of the non-market sphere is households – essentially, families – which produce certain goods not available on the markets and which, like the free market, are currently subject to unfavourable trends.

The basis of economic prosperity is a specific balance between these spheres, as both consume the same basic resource: human labour (we could also say human time and energy). Households earn money by providing labour, through which they obtain various goods from the market sphere. At the same time, they perform certain non-market work that is necessary both for the functioning of these households, and for supplying the market sphere with the next generation of workers.
Problems arise when human labour is underutilized due to barriers to market access or various market failures, and also when markets absorb too much labour at the expense of the non-market sphere. These two spheres are interdependent, which is why maintaining a balance between them is so important. If the market sector appropriates too large a share of labour resources, the non-market sector – deprived of those resources – begins to falter. Conversely, markets cannot adequately serve households when they lack sufficient labour input.

In this book, among other things, I argue that flawed theories underpinning contemporary economic policy, along with neglect in the field of political economy, have severely disrupted this fundamental balance and distorted the cost–benefit ratio of the market economic system. Readers who have no influence over government actions and do not belong to the world’s elite may be inclined to dismiss my arguments. But if they are accurate, it means that even now, the readers’ work is not yielding the proper results, and part of their effort is heading in the wrong direction.

You may imagine that you are currently earning your way towards a solid retirement, and that your expensive insurance will provide you with good care when your health declines. Perhaps you look to the future with optimism thanks to your accumulated savings and other assets. However, it is worth being aware that all of this will deliver the expected benefits only if the current socio-economic system continues to function in a stable manner. Meanwhile, it is entirely reasonable to assume that this will not be the case, and that one should prepare for inevitable disruptions. What will money be worth if there is no one to work for it, or insurance if it is not backed by services of adequate quality?

You may already recognize the risks associated with money that is subject to constant inflation, or with investing savings in corporate stocks that never pay adequate dividends. But this knowledge is not enough. You must also be aware that some portion of your daily effort may prove worthless – or even harmful – if it comes at the expense of more important tasks in the non-market sphere.
You may think you’re perfectly aware of all this, and that you already take good care of your health and make time for relaxation with family. But do you realize that your far-from-perfect marriage may in fact be the most durable of your assets, and that your entirely average house or apartment may be the most valuable capital you will possess in the future? Instead of pushing your children out of the home in pursuit of a questionable education, it may be better to keep them closer – both as security for your own old age, and so that you can remain a source of support for them. Rather than constantly seeking better ways to earn and multiply money, it may be wiser to invest your time and energy in domestic skills, in the affairs of your local community, or even in addressing certain broader social problems.

Although economic thought in past centuries has focused primarily on the market sphere, the time is coming when economics will devote increasing attention to the non-market domain of human activity.