Did you know that…
- A single ATM withdrawal takes an entire day to complete and involves ten separate organizations working together?
- Customer reviews and user feedback are a key factor behind eBay’s $31 billion market value?
- Recognizing problems with quality control and addressing them early on helped Toyota become one of the world’s leading car companies?
- Underneath the Federal Reserve Bank lies $200 billion worth of the world’s gold (that’s about forty times the height of the Empire State Building)?
When you pour yourself a glass of milk, does it ever cross your mind that it might not be safe to drink? Of course not—you trust that the fifteen people who handled it before it reached your refrigerator all did what they were supposed to do. In short, you depend on their integrity to take that first sip.
In The Economics of Integrity journalist Anna Bernasek explores the profound ways in which integrity, traditionally thought of as an “eat your spinach” topic, is in fact a collective virtue that forms the bedrock of our economy. Through her colorful—and often surprising—stories, Bernasek takes us on a journey (from car factories to dairies to the Federal Reserve) that reveals the deep layers of trust involved in even the simplest of transactions and how our stock in integrity is our most valuable economic asset.
Whether it’s drinking milk, withdrawing cash, or driving a car, our daily activities depend on preexisting relationships and assumptions that are founded on trust. Integrity is an essential part of the “invisible infrastructure of the economy,” and when an individual cuts corners or breaks regulations for personal reward, the entire system is compromised: trust unravels, firms collapse, and markets break down. As Bernasek explains, “doing the right thing” not only strengthens our collective stock in integrity, but is necessary for an economy to run efficiently. In this era of renewed responsibility and transparency, The Economics of Integrity offers a bold new way of looking at our economy and how we can invest in integrity to create and share greater wealth; this is a book for our times.
Advance Praise for The Economics of Integrity
“When our businesses and markets operate with integrity we are able to create enormous wealth. Anyone interested in understanding what makes our economy work must have this on their bookshelf.”
- Mark Zandi, Chief Economist, Moody’s
“Bernasek delivers an engaging and enlightening journey into the roots of integrity, building a convincing case for why it is the bedrock of our economy. I learned a lot reading this book.”
- Rom Brafman, bestselling author of Sway
“In this fascinating little book, Anna Bernasek shows what delivering milk has in common with financial reform. The common thread? Both need mechanisms to ensure integrity. Her insights will stick with you long after you put the book down.”
-Alan Blinder, Economist and co-director of Princeton’s Center for Economic Policy Studies, former Economic Advisor to Bill Clinton
“In an era of structured finance, nano-technology, and complex business models, Anna Bernasek’s timely, valuable, and highly readable book reminds us that the economy runs on something much more simple: trust.”
- Dan Gross, Senior Editor, Newsweek and author of Dumb Money: How Our Greatest Financial Minds Bankrupted the Nation