Back to the future: a heterodox economist rewrites Keynes’s General Theory of Employment, Interest, and Money to serve as the basis for a macroeconomics for the twenty-first century.

John Maynard Keynes’s General Theory of Employment, Interest, and Money was the most influential economic idea of the twentieth century. But, argues Stephen Marglin, its radical implications were obscured by Keynes’s lack of the mathematical tools necessary to argue convincingly that the problem was the market itself, as distinct from myriad sources of friction around its margins.

Marglin fills in the theoretical gaps, revealing the deeper meaning of the General Theory. Drawing on eight decades of discussion and debate since the General Theory was published, as well as on his own research, Marglin substantiates Keynes’s intuition that there is no mechanism within a capitalist economy that ensures full employment. Even if deregulating the economy could make it more like the textbook ideal of perfect competition, this would not address the problem that Keynes identified: the potential inadequacy of aggregate demand.

Ordinary citizens have paid a steep price for the distortion of Keynes’s message. Fiscal policy has been relegated to emergencies like the Great Recession. Monetary policy has focused unduly on inflation. In both cases the underlying rationale is the false premise that in the long run at least the economy is self-regulating so that fiscal policy is unnecessary and inflation beyond a modest 2 percent serves no useful purpose.

Fleshing out Keynes’s intuition that the problem is not the warts on the body of capitalism but capitalism itself, Raising Keynes provides the foundation for a twenty-first-century macroeconomics that can both respond to crises and guide long-run policy.

The wave of liberalization that swept world markets in the 1980s and 90s altered the ways that governments manage their economies. Reinventing State Capitalism analyzes the rise of new species of state capitalism in which governments interact with private investors either as majority or minority shareholders in publicly-traded corporations or as financial backers of purely private firms (the so-called “national champions”). Focusing on a detailed quantitative assessment of Brazil’s economic performance from 1976 to 2009, Aldo Musacchio and Sergio Lazzarini examine how these models of state capitalism influence corporate investment and performance.

According to one model, the state acts as a majority investor, granting the state-owned enterprise (SOE) financial autonomy and allowing professional management. This form, the authors argue, has reduced many agency problems commonly faced by state ownership. According to another hybrid model, the state uses sovereign wealth funds, holding companies, and development banks to acquire a small share of equity ownership in a corporation, thereby potentially alleviating capital constraints and leveraging latent capabilities.

Both models have benefits and costs. Yet neither model has entirely eliminated the temptation of governments to intervene in the operation of natural resource industries and other large strategic enterprises. Nevertheless, the longstanding debate over whether private ownership is superior or inferior to state capitalism has become irrelevant, Musacchio and Lazzarini conclude. Private ownership is now mingled with state capital on a global scale.

Karl Polanyi’s “substantivist” critique of market society has found new popularity in the era of neoliberal globalization. The author reclaims this polymath for contemporary anthropology, especially economic anthropology, in the context of Central Europe, where Polanyi (1886–1964) grew up. The Polanyian approach illuminates both the communist era, in particular the “market socialist” economy which evolved under János Kádár in Hungary, as well as the post-communist transformations of property relations, civil society and ethno-national identities throughout the region.

Hann’s analyses are based primarily on his own ethnographic investigations in Hungary and South-East Poland. They are pertinent to the rise of neo-nationalism in those countries, which is theorized as a malign countermovement to the domination of the market. At another level, Hann’s adaptation of Polanyi’s social philosophy points beyond current political turbulence to an original concept of “social Eurasia”.

The financial and economic collapse that began in the United States in 2008 and spread to the rest of the world continues to burden the global economy. David Kotz, who was one of the few academic economists to predict it, argues that the ongoing economic crisis is not simply the aftermath of financial panic and an unusually severe recession but instead is a structural crisis of neoliberal, or free-market, capitalism. Consequently, continuing stagnation cannot be resolved by policy measures alone. It requires major institutional restructuring.

Kotz analyzes the reasons for the rise of free-market ideas, policies, and institutions beginning around 1980. He shows how the neoliberal capitalism that resulted was able to produce a series of long although tepid economic expansions, punctuated by relatively brief recessions, as well as a low rate of inflation. This created the impression of a “Great Moderation.” However, the very same factors that promoted long expansions and low inflation—growing inequality, an increasingly risk-seeking financial sector, and a series of large asset bubbles—were not only objectionable in themselves but also put the economy on an unsustainable trajectory. Kotz interprets the current push for austerity as an attempt to deepen and preserve neoliberal capitalism. However, both economic theory and history suggest that neither austerity measures nor other policy adjustments can bring another period of stable economic expansion. Kotz considers several possible directions of economic restructuring, concluding that significant economic change is likely in the years ahead.

A bold history of the rise of central banks, showing how institutions designed to steady the ship of global finance have instead become as destabilizing as they are dominant.

While central banks have gained remarkable influence over the past fifty years, promising more stability, global finance has gone from crisis to crisis. How do we explain this development? Drawing on original sources ignored in previous research, The Rise of Central Banks offers a groundbreaking account of the origins and consequences of central banks’ increasing clout over economic policy.

Many commentators argue that ideas drove change, indicating a shift in the 1970s from Keynesianism to monetarism, concerned with controlling inflation. Others point to the stagflation crises, which put capitalists and workers at loggerheads. Capitalists won, the story goes, then pushed deregulation and disinflation by redistributing power from elected governments to markets and central banks. Both approaches are helpful, but they share a weakness. Abstracting from the evolving practices of central banking, they provide inaccurate accounts of recent policy changes and fail to explain how we arrived at the current era of easy money and excessive finance.

By comparing developments in the United States, the United Kingdom, Germany, and Switzerland, Leon Wansleben finds that central bankers’ own policy innovations were an important ingredient of change. These innovations allowed central bankers to use privileged relationships with expanding financial markets to govern the economy. But by relying on markets, central banks fostered excessive credit growth and cultivated an unsustainable version of capitalism. Through extensive archival work and numerous interviews, Wansleben sheds new light on the agency of bureaucrats and calls upon society and elected leaders to direct these actors’ efforts to more progressive goals.

Climate change and other ecological ills are driving the creation of a grassroots global movement for change. From Latin America to Europe, Australia and China a militant movement merging red and green is taking shape.

Ecosocialists argue that capitalism threatens the future of humanity and the rest of nature. From indigenous protest in the Peruvian Amazon to the green transition in Cuba to the creation of red-green parties in Europe, ecosocialism is defining the future of left and green politics globally. Latin American leaders such as Morales and Chavez are increasingly calling for an ecosocialist transition.

Drawing on the work of key thinkers such as Joel Kovel and John Bellamy Foster, Derek Wall provides an unique insider view of how ecosocialism has developed and a practical guide to focused ecosocialist action. A great handbook for activists and engaged students of politics.

Winner of the SHEAR Book Prize
Honorable Mention, Avery O. Craven Award

“Few books have captured the lived experience of slavery as powerfully.”
—Ari Kelman, Times Literary Supplement

“[One] of the most impressive works of American history in many years.”
—The Nation

“An important, arguably seminal, book…Always trenchant and learned.”
—Wall Street Journal

A landmark history, by the author of National Book Critics Circle Award finalist The Broken Heart of America, that shows how slavery fueled Southern capitalism.

When Jefferson acquired the Louisiana Territory, he envisioned an “empire for liberty” populated by self-sufficient white farmers. Cleared of Native Americans and the remnants of European empires by Andrew Jackson, the Mississippi Valley was transformed instead into a booming capitalist economy commanded by wealthy planters, powered by steam engines, and dependent on the coerced labor of slaves. River of Dark Dreams places the Cotton Kingdom at the center of worldwide webs of exchange and exploitation that extended across oceans and drove an insatiable hunger for new lands. This bold reconsideration dramatically alters our understanding of American slavery and its role in U.S. expansionism, global capitalism, and the upcoming Civil War.

Walter Johnson deftly traces the connections between the planters’ pro-slavery ideology, Atlantic commodity markets, and Southern schemes for global ascendency. Using slave narratives, popular literature, legal records, and personal correspondence, he recreates the harrowing details of daily life under cotton’s dark dominion. We meet the confidence men and gamblers who made the Valley shimmer with promise, the slave dealers, steamboat captains, and merchants who supplied the markets, the planters who wrung their civilization out of the minds and bodies of their human property, and the true believers who threatened the Union by trying to expand the Cotton Kingdom on a global scale.

But at the center of the story are the enslaved people who pulled down the forests, planted the fields, picked the cotton—who labored, suffered, and resisted on the dark underside of the American dream.

“Shows how the Cotton Kingdom of the 19th-century Deep South, far from being a backward outpost of feudalism, was a dynamic engine of capitalist expansion built on enslaved labor.”
—A. O. Scott, New York Times

“River of Dark Dreams delivers spectacularly on the long-standing mission to write ‘history from the bottom up.’”
—Maya Jasanoff, New York Review of Books

A new history of Rotary International shows how the organization reinforced capitalist values and cultural practices at home and tried to remake the world in the idealized image of Main Street America.

Rotary International was born in Chicago in 1905. By the time World War II was over, the organization had made good on its promise to “girdle the globe.” Rotary International and the Selling of American Capitalism explores the meteoric rise of a local service club that brought missionary zeal to the spread of American-style economics and civic ideals.

Brendan Goff traces Rotary’s ideological roots to the business progressivism and cultural internationalism of the United States in the early twentieth century. The key idea was that community service was intrinsic to a capitalist way of life. The tone of “service above self” was often religious, but, as Rotary looked abroad, it embraced Woodrow Wilson’s secular message of collective security and international cooperation: civic internationalism was the businessman’s version of the Christian imperial civilizing mission, performed outside the state apparatus. The target of this mission was both domestic and global. The Rotarian, the organization’s publication, encouraged Americans to see the world as friendly to Main Street values, and Rotary worked with US corporations to export those values. Case studies of Rotary activities in Tokyo and Havana show the group paving the way for encroachments of US power—economic, political, and cultural—during the interwar years.

Rotary’s evangelism on behalf of market-friendly philanthropy and volunteerism reflected a genuine belief in peacemaking through the world’s “parliament of businessmen.” But, as Goff makes clear, Rotary also reinforced American power and interests, demonstrating the tension at the core of US-led internationalism.