1.3.2 Values in the economy

Values are the beliefs that guide how we live. They help us decide what is right or wrong, what matters most, and what kind of life is worth living, ‘the good life’. They influence what we buy, how we work, and how we treat other people.

Some values focus on the self like freedom, ambition, and power. Others focus on relationships, like care, fairness, respect. Some reflect our connection to nature, like stewardship, balance, harmony.

Because the economy is part of society and Earth systems (Section 1.1.2), it reflects the values of the people in it (or at least the values of those with the most power, Section 1.3.9). This includes how resources are shared, who has power, what counts as success, and how decisions are made. Even money reflects values. In some places, money flows in ways that support community wellbeing. In others, it flows toward status and control, even if it causes harm.

Across cultures, many people value the same things. But different people and societies prioritise values in different ways. Psychologist Shalom Schwartz studied values in over 80 countries. He found ten common values grouped into four main types (Table 1): openness to change and conservation; self-enhancement and self-transcendence.

Table 1. Types of values

These four types help us understand major patterns in what people value. But to see how values interact, we need to look more closely at the ten individual values within these groups that Schwartz identified. Everyone likely shares all these values, but the degree of importance varies depending on their culture, education, family, and life experience.

Values change with context

Our values are not fixed. Instead, different situations bring out different values. A person who values stimulation most of the time might focus on security in a moment of crisis. Psychologists have observed two common patterns in how values interact:

• Bleedover effect: When one value is activated, nearby values are often strengthened too. For example, focusing on benevolence may also increase concern for tradition.

• See-saw effect: Values on opposite sides of the circle tend to suppress one another. Emphasising power or achievement may weaken care-based values like benevolence or universalism.

These patterns help us understand how values are shaped by our environment. Schools, media, laws, advertising, and policies all influence which values are reinforced.

Extrinsic values can actually weaken intrinsic values. Research shows that introducing money, rewards, or competition into an activity that people already value can reduce their willingness to do it for its own sake. This is called motivation crowding. For example, paying people to recycle, read, or donate blood may reduce the sense of responsibility or connection they once felt. This crowding out issue is discussed in Section 3.2.5, which explores the moral limits of markets. When we rely too heavily on price signals or financial incentives to motivate human behaviour, we risk weakening important intrinsic values like care, justice, or ecological responsibility that a regenerative economy depends on.

So when we make economic decisions or policies, we have to ask: What kinds of values are we encouraging and what kind of behaviour do they lead to?

The role of culture

Culture is the beliefs, values, attitudes, behaviours and traditions shared by a group of people. Culture shapes how people understand the world, relate to others, and make economic decisions. Different cultures express values in different ways like rituals, responsibilities and stories. Let’s look at a few examples of how economic values are lived in different cultural traditions.

Ubuntu (Southern Africa)

In many Southern African cultures, people say: ‘I am because we are.’ This expresses the idea of ubuntu, a way of living that sees people as deeply connected to one another. A person is not fully human without community. In an ubuntu-shaped economy:

• wealth is shared to support the whole community;

• care and responsibility are more important than personal gain;

• success means belonging, mutual respect, and shared wellbeing.

Ubuntu emphasises that cooperation and social obligation, rather than individual competition, shape a healthy economy.

Islamic values

In Islam, economic life is guided by strong ethical principles found in the Qur’an and Hadith. These include:

• adl – justice in trade, contracts, and treatment of others;

• amanah – trust and responsibility, especially in handling money or property

• ihsan – doing what is good and generous, even beyond what is required;

• khalifah – humans as stewards of the Earth, not owners.

Islamic finance avoids interest-based lending (riba) and encourages sharing through zakat, a required form of wealth redistribution. Instead of interest, it uses tools like mudarabah (profit-sharing partnerships) and murabaha (buying and reselling at an agreed profit) to support fair and responsible investment. These values shape systems that support fairness, mutual trust, and collective responsibility, rather than focusing only on making as much profit as possible, no matter the impact on others.

Indigenous values

Many indigenous communities place strong value on relationships with people, land, water, ancestors, and future generations. These relationships come with duties. While values vary across communities, some shared themes include:

• relationality – humans are part of the living world, not separate from it;

• reciprocity – when you take or receive, you must also give back (Section 1.3.8);

• responsibility – make decisions with future generations in mind.

For example, in Māori culture, whanaungatanga refers to kinship, collective responsibility, and the importance of community in decision-making (see video below). In the Andes, the concept of sumak kawsay (known in Spanish as Buen Vivir) describes a good life lived in harmony with nature and others.

These values influence how land is cared for, how food is shared, and how leadership works. They support economic systems that protect and enhance relationships rather than extract value from them.

Values shape every part of economic life. They influence how decisions are made in households, businesses, and governments. But values are not fixed. We can make them visible, question them, and change them. The values we reinforce through education, institutions, and everyday choices help shape the kind of economy we live in. 

So as you study regenerative economics, remember to ask:

• What kind of values are currently guiding the economy?

• What kind of future do we want to build together, and what values would support that future?

Concept: Systems

Skills: Thinking skills (creative thinking, critical thinking)

Time: varies depending on the option

Type: Individual, then in pairs or group if possible

Option 1 - What values are important to you?

Time: 30 minutes

Note to teachers: You may want to print out the list of values and the values map for this activity. Especially with the map, it will be easier for students to locate their values and see how they are positioned with one another. If you print out the map, do not give it to students until they have identified their 5 values, because knowing ahead of time where they are positioned can influence which ones they choose.

Look through the list of values below carefully and choose 5 that feel most important to you.

Option 3: Discussion - Does money make people happy?

2 x 40 minutes minimum - students need time to research and then time for the discussion or debate

This is a hotly debated question both among the general population and among social scientists. Divide into groups to research each side of the debate and use a debate or discussion format that you are familiar with to take on the question.

Ideas for longer activities, deeper engagement, and projects are listed in Subtopic 1.5 Taking action

Option 4: Can actions change our values?

Time: 30–40 minutes

Think of a time when you did something that felt new, unfamiliar, or slightly uncomfortable, like helping someone or standing up for fairness. Did the experience shift what you care about or how you think?

Discuss in pairs or small groups:

• Do our actions only reflect our values, or can they also shape them? If so, how might that work?

• What might these two psychological theories have to do with this question? Divide up the two theories among the pair or small group, read about it, and then come back to the group to share what you learned and discuss the relevance to the question of whether actions can affect values.

• Self-perception theory

• Cognitive dissonance theory

• Buen vivir series (in Spanish) - A 3-part series on the good life from Channel Thirteen in Columbia. Difficulty level: easy

• Common Cause Foundation - the website of an organisation studying values and their impacts. Difficulty level: medium

• A Glossary for the Appreciation of Life - Over 140 unique words from around the world that celebrate nature, emotions, and life. Each word offers a fresh way to see and value the beauty around you. Perfect for curious minds about what it means to live the ‘good life’. Difficulty level: medium.

• The 89 Percent Project - 80-89% of the world’s people want their governments to be doing more to address climate change. This project aims to tell their stories to help trigger social tipping points and new narratives on state action for people and the planet. Difficulty level: easy

• World Happiness Report 2024 - the 2024 report focuses on the happiness of people at different stages of life, in addition to reporting their latest findings on the happiest countries and the factors affecting happiness.

• Harvard Study of Adult Development - the website of the world’s longest study on human happiness, started in 1938 and continuing today. There are a number of key insights about ‘the good life’ from this study, but in simple terms, relationships are the most important factor. Difficulty level: easy

• Isolated Indigenous people as happy as wealthy western peers – news article from The Guardian about a study of happiness levels among remote indigenous people. Difficulty level: easy

• High life satisfaction reported among small-scale societies with low incomes - the academic study referred to in the article above. Difficulty level: high.

• Decoupling 'The Good Life' from Capitalism – An insightful article by the Post Growth Institute that examines how capitalist frameworks shape our perceptions of abundance and security. It invites readers to reconsider their personal and cultural narratives around money and work, advocating for a redefinition of well-being beyond material wealth. Difficulty level: medium

Doughnut Economics Action Lab. 3: Nurture human nature. DEAL and Rethinking Economics. https://docs.google.com/presentation/d/1C_1wFr_PQlw-y0WM7ln_jJ5h9C4fEyONuFvwUo0KiOo/edit?usp=sharing

Holmes, T. et al. (2012). Common cause handbook. Common Cause Foundation. https://commoncausefoundation.org/_resources/the-common-cause-handbook/

de Muijnck, Sam and Joris Tieleman (2021). Economy Studies: A Guide to Rethinking Economics Education. Amsterdam University Press. https://www.economystudies.com/book/

The Pachamama Alliance. Sumak Kawsay: Teachings of Indigenous Peoples. pachamama.org/sumak-kawsay

Reardon, J., Caporale, M. M. A., & Cato, M. S. (2018). Introducing a new economics: pluralist, sustainable and progressive. Pluto Press. 

Link to Quizlet interactive flashcards and terminology games for Section 1.3.2 Values in the economy

values: ideas about what is important or good

the good life: a life that brings wellbeing, with all its possible meanings, to self and others

power: the ability to influence events or the behaviour of other people

care: the act of providing what is necessary for the health, welfare, upkeep, and protection of someone or something

stewardship: the job of supervising or taking care of something, such as an organisation or ecosystem

economy: all the human-made systems that transfer and transform energy and matter to meet human needs and wants

system: a set of interdependent parts that organise to create a functional whole

culture: the beliefs, values, attitudes, behaviours and traditions shared by a group of people and transmitted from one generation to the next

transcendence: going beyond something, such as the self

hedonism: a set of values focused on pleasure and enjoyment.

benevolence: a set of values focused on care and concern for others.

universalism: a set of values focused on understanding, tolerance, and concern for all people and nature

bleedover effect: when a value is activated by strengthening other closely-related values.

see-saw effect: when opposite values tend to suppress one another.

intrinsic values: when something has value simply for what it is; or values that are driven by inner motivations

extrinsic values: when something has value for something other than what it is; or values that come from external motivations, like rewards or status

empathy: the ability to understand and share the feelings of another

solidarity: unity or agreement of feeling or action, especially among individuals with a common interest

motivation crowding: a situation where external incentives, like money rewards, can reduce or 'crowd out' intrinsic motivation to do something

policy: a course or principle of action adopted or proposed by an organization or individual

norm: a social rule for accepted and expected behaviour, can be stated or unstated

ritual: ceremony consisting of a series of actions performed according to a prescribed order

ubuntu: an African philosophy and ethical concept emphasizing interconnectedness, shared humanity, and the belief that a person's well-being is tied to the well-being of others in the community

interest: the price a borrower pays to borrow a sum of money

indigenous community: the original settlers of an area (pre-invasion/colonialism) who have retained their culture apart from colonisers

reciprocity: exchanging things and favours with others for mutual benefit

market: a system where people buy and sell goods and services for a price.

efficiency: the ratio of resource inputs compared to outputs

productivity: a measure of economic performance that compares the amount of goods and services produced (output) with the amount of inputs used to produce those goods and services.

consumption: using resources and products to meet needs; or in food chains, eating another organism

wealth: the total value (stock) of someone’s assets such as money, house, or investments

profit: the difference between the amount earned from selling something and the costs of buying, operating, or producing it

economic growth: an increase in the total value of goods and services produced in a period of time

social cohesion: the extent to which people in society feel connected to one another and share common values

regenerative economy: an economic system that meets human needs in a way that strengthens social and ecological systems