Social Value Is Subjective

Geoff Mulgan asserts that “Social value is not an objective fact. Instead, it emerges from the interaction of supply and demand, and therefore may change across time, people, places, and situations.” [1] This statement is true in current times as well as in many eras of history; we can see the flexible nature of social value through the evolution of child labor laws in American history. In nineteenth century during the American Industrial period, children toiled long hours in factories, mines, shops, etc. They were exploited as cheap and obedient labor; no laws protected them. This was an accepted way of life, as many families depended on the additional income from their children to survive. It was not until the twentieth century that public opinion raged against the working conditions in which children suffered. Although the same terms did not exist back then to define what happened, essentially the public saw that there was social value in protecting children from harsh and brutal working conditions. Groups such as the National Child Labor Committee fought for the rights of children. Finally, the government responded to this social issue by passing strict regulations on child labor. 

Why did it take until the twentieth century for the government to take action? It was only until then that the forces of effective demand and effective supply came into play. Geoff defines “effective demand” as “someone willing to pay for…an outcome”; “effective supply” has three requirements: “the service/outcome works, is affordable, and is implementable”. [1] We can see how the forces of effective demand and effective supply work in the instance of child labor reform in American history. On the effective demand side, the public wanted more laws protecting the rights of children—they were willing to stand behind this outcome and lobby relentlessly for it. This was their payment on the effective demand side. On the effective supply side, the government finally responded by passing restrictions and regulations on the employment of children. The outcome, laws protecting children from exploitation, worked, was affordable, and was implemented.

This is only example in history out of many. We could apply the forces of effective demand and effective supply to a number of social movements—the anti-slavery movement, the women’s suffrage movement, etc. Social value is indeed malleable and subject to the forces of context, effective demand, and effective supply.

[1] Mulgan, Geoff. (2010). Measuring Social Value. Stanford Social Innovation Review. http://ssir.org/articles/entry/measuring_social_value

[2] Hansen, J. (2011). The American Era of Child Labor. The Social Welfare History Project.

http://www.socialwelfarehistory.com/programs/child-welfarechild-labor/child-labor/