notwithstanding the relatively low pay of care workers. There is a benefit to society in having more care labor, but serious costs when women’s talents and ideas are discounted in business and other settings. And there is a loss when low pay drives men out of care labor.
29 Does caring undermine economic growth? The care economy is one of several places where modern capitalist market economies rest on the values and activities of an older nonmarket society, even while chipping away at these to increase capitalist surplus. Within families, there is extensive production and redistribution process outside of the market. Goods and services flow from parent to parent, from adult children to elderly parents, between siblings, and, most of all, from parents to children: all outside of the market and all directed by emotion and other non-market processes. Without these feelings and the activities they generate, society would literally die out: children would not be born or survive to adulthood and the disabled and elderly would die. Capitalist society survives only because of the persistence of the noncapitalist care economy. Born in New Jersey in 1928, Arthur Okun was a Professor of economics at Yale when he was appointed to be senior economist on President Kennedy’s Council of Economic Advisors, At the Council, Okun formulated “Okun’s Law” relating unemployment to lost output. He was deeply involved in debates over anti-poverty programs during Kennedy’s New Frontier and President Johnson’s Great Society. Okun favored high taxes on the rich and welfare programs for the poor to redistribute income but he warned in his 1975 Godkin Lecture at Harvard that such programs might reduce total output.
30 The noncapitalist economy persists and plays a crucial role beyond the family. All functioning societies use nonmarket rewards and punishments. We reward good citizenship with promises of mutual aid within communities –the exchange of favors –and by distributing honor and prestige, including medals, special hats, team jackets, and public respect. Sometimes we tip the violinist but we also reward a good concert performance with applause and shouts of ‘bravo.’We celebrate our public figures, including artists, civil servants, and soldiers, with medals and praise. Even when we use market incentives, we often do so surreptitiously, almost to conceal that a market transaction has occurred. We put payment into envelopes or even pay in gift cards rather than cash or checks. 0246810118.104.22.168.22.214.171.124.80.91OutputEqualityLess equality, more incomeMore equality,less incomeFigure 8. Equality versus Efficiency: Okun's view
31 The continued use of nonmarket allocations raises a dilemma that the American economist Arthur Okun addresses in his 1975 book Equality versus Efficiency: the Big Tradeoff.