56 pages • 1 hour read
Michael J. SandelWhat Money Can’t Buy: The Moral Limits of Markets
Nonfiction | Book | Adult | Published in 2012A modern alternative to SparkNotes and CliffsNotes, SuperSummary offers high-quality Study Guides with detailed chapter summaries and analysis of major themes, characters, and more.
Index of Terms
“Crowding-out” Effect
The “crowding-out” effect is an economic anomaly, whereby incentives do not increase supply as would usually be predicted by economic modeling. When commodification or financial incentives are introduced into a situation, intrinsic motivation toward a project or service can be “crowded-out” by market values, which can act as a disincentive. This is illustrated in the case of Israeli high school students, who collected less money for charity when they were paid commissions, as opposed to when they were doing it for purely charitable reasons: The market values “crowded out” their altruistic motivation, making them less engaged in the task.
Free-Market Values
Free-market values espouse the effectiveness and innate morality of a free market, where buying and selling is endorsed. Free-market values stress the voluntary nature of these exchanges and are opposed to government regulation. Proponents of these values argue that they result in prosperity and the unhindered acquisition of desired goods and services for the individuals who desire them most, as illustrated by the amount they are willing to pay.
Libertarianism
Libertarianism is a political ideology that argues it is possible to create a freer and more prosperous society through less (or nonexistent) taxation, free trade, capitalist ventures, and private ownership. It strongly opposes government intervention in commercial endeavors.
Non-Market Spaces
Non-market spaces are spaces that are traditionally not dictated by commercial interests, such as schools. Increasingly, however, market values are infiltrating non-market spaces, such as the emergence of advertising in schools, jails, court houses, and on police cars. Michael Sandel suggests that non-market spaces are being demeaned and degraded by the infiltration of market values into all aspects of life.
Queues (as Opposed to Markets)
Queues allocate resources based on one’s willingness to sacrifice one’s time, and therefore to wait in the queue (line). The inherent fairness of queues is disrupted when market values infiltrate, leading ticket scalpers or paid queue standers to profit from the willingness of third parties to allocate themselves the resources through money, rather than through time.
Ticket Scalping
Ticket scalping is the practice of buying a ticket with the intention of reselling it at a higher price to a willing bidder. A market value perspective would suggest that this is a morally sound process, as tickets reach the individuals who prize them most, as illustrated by their willingness to pay the most. Sandel argues that since not everyone has equal financial means, whoever can afford the most for a ticket is not necessarily the person who would appreciate the event the most.
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By Michael J. Sandel
