Economics of Integrity

Through her colorful-and often surprising-stories (examples range from pouring milk on your corn flakes to international gold trading) the acclaimed journalist takes us on a journey 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. A big idea book with the entertainment value of Predictably Irrational, it also sheds light on our current economic crisis and the inner workings of global financial markets.

Beginning with things we take for granted in our daily lives-milk, money, and markets-this book shows how much we depend on and benefit from integrity. Through the eyes of Toyota, the number one carmaker in the world, we learn how integrity is an investment with a financial payoff and through the experience of successful start ups like eBay and Amazon we can understand how integrity is built up over time. Not only does this book reveal how integrity is an important source of our prosperity, but it also lays out a system for how to generate more integrity and more wealth. Bernasek explains the DNA of integrity and reveals the key building blocks of disclosure, norms, and accountability. This book isn't just an interesting read about the way global markets really work. It also delivers clear and practical steps to building a stronger economy based upon trust that will benefit everyone. The Economics of Integrity offers a bold new way to look at our economy; this is a book for our times.

Ten Things You Might Not Know About Integrity:

1. A single ATM withdrawal takes an entire day to complete and involves 10 separate organizations working together.
2. Online customer reviews and transparency are a key factor behind Amazon's $36 billion market value.
3. Underneath the Federal Reserve Bank lies $200 billion worth of the world's gold (about 40 times the height of the Empire State building). The Fed has been protecting that gold for almost a century.
4. When you drink a glass of milk, did you know you depend on at least 15 people to make sure that milk is safe?
5. In global financial markets, $50 million trades are made every second on the basis of someone else's word.
6. Tamperproof packaging came about after the Tylenol poisoning scandal in 1982.
7. After the Chinese milk scandal of 2008, officials estimated that it could take more than two years for milk consumption to return to pre-scandal levels.
8. The US stock market is worth $9 trillion; one third of that value is due to integrity.
9. Toyota became the leading car company in the world recognizing problems with quality control early and addressing them.
10. Investing in integrity is a way to rebuild the financial system so that everyone benefits.