Powerful financial forces have supported the neoliberal project since the 1980s to advance their interests, but there are now signs that these forces have a new face and a new strategy.
The majority of the British finance sector threw its support behind Britain leaving the European Union, a flagship institution of neoliberalism. Beyond this counterintuitive move, what was really happening and why? Alt-Finance examines a new authoritarian turn in financialised democracies, focusing on the City of London, revealing a dangerous alternative political project in the making.
In a clash with traditional finance, the new behemoths of financial capital - hedge funds, private equity firms, and real estate funds - have started to cohere around a set of political beliefs, promoting libertarian, authoritarian, climate-denying, and Eurosceptic views. Protecting investments, suppressing social dissent, and reducing state interference is at the core of their mission for a new world order.
By following the money, the authors provide indisputable evidence of these worrying developments. Through a clear analysis of the international dealings of this new authoritarian-libertarian regime, not just in Britain but in the US and Brazil, we can understand how our world is being shaped against our will by struggles between dominant groups.
Populists on both sides of the political aisle routinely announce that the American Dream is dead. According to them, the game has been rigged by elites, workers can’t get ahead, wages have been stagnant for decades, and the middle class is dying.
Michael R. Strain, director of economic policy studies at the American Enterprise Institute, disputes this rhetoric as wrong and dangerous. In this succinctly argued volume, he shows that, on measures of economic opportunity and quality of life, there has never been a better time to be alive in America. He backs his argument with overwhelming—and underreported—data to show how the facts favor realistic optimism.
He warns, however, that the false prophets of populism pose a serious danger to our current and future prosperity. Their policies would leave workers worse off. And their erroneous claim that the American Dream is dead could discourage people from taking advantage of real opportunities to better their lives. If enough people start to believe the Dream is dead, they could, in effect, kill it. To prevent this self-fulfilling prophecy, Strain’s book is urgent reading for anyone feeling the pull of the populists.
E. J. Dionne and Henry Olsen provide spirited responses to Strain’s argument.
The award-winning classic on why we must revolutionise the fashion industry
*Selected by Emma Watson for her Ultimate Book List*
Fashion is political. From the red carpets of the Met Gala to online fast fashion, clothes tell a story of inequality, racism, and climate crisis. In The Anti-Capitalist Book of Fashion, Tansy E. Hoskins unpicks the threads of capitalist industry to reveal the truth about our clothes.
Fashion brands entice us to consume more by manipulating us to feel ugly, poor and worthless, sentiments that line the pockets of billionaires exploiting colonial supply chains. Garment workers on poverty pay risk their lives in dangerous factories, animals are tortured, fossil fuels extracted and toxic chemicals spread just to keep this season's collections fresh.
We can do better than this. Moving between Karl Lagerfeld and Karl Marx, The Anti-Capitalist Book of Fashion goes beyond ethical fashion and consumer responsibility showing that if we want to feel comfortable in our clothes, we need to reshape the system and ensure this is not our last season.
An Economist Book of the Year
A Financial Times Book of the Year
A Foreign Affairs Best Book of the Year
A Prospect Best Book of the Year
A ProMarket Book of the Year
An Omidyar Network “8 Storytellers Informing How We’ve been Reimagining Capitalism” Selection
“Brilliant…Poses all the important questions about our future.”
—Gordon Brown
“A scholar of inequality warns that while capitalism may have seen off rival economic systems, the survival of liberal democracies is anything but assured.”
—The Economist
We are all capitalists now. For the first time in human history, the world is dominated by one economic system. At some level capitalism has triumphed because it works: it delivers prosperity and gratifies our desire for autonomy. But this comes at a moral price, pushing us to treat material success as the ultimate goal, and offers no guarantee of stability. While Western liberal capitalism creaks under the strains of inequality and excess, some are flaunting the virtues of political capitalism, exemplified by China, which may be more efficient, but is also vulnerable to corruption and social unrest.
One of the outstanding economists of his generation, Branko Milanovic mines the data to tell his ambitious and compelling story. Capitalism gets a lot wrong, he argues, but also much right—and it isn’t going away anytime soon. Our task is to improve it in the hopes that a more equitable capitalism can take hold.
“Erudite, illuminating…Engaging to read…As a virtuoso economist, Milanovic is superb when he is compiling and assessing data.”
—Robert Kuttner, New York Review of Books
“Leaves little doubt that the social contract no longer holds. Whether you live in Beijing or New York, the time for renegotiation is approaching.”
—Edward Luce, Financial Times
The Conundrum of Russian Capitalism looks at the nature of Russian capitalism following the fall of the Soviet Union, showing how the system originated in the degenerated Soviet bureaucracy and the pressures of global capital. Ruslan Dzarasov provides a detailed analysis of Russian corporate governance, labour practices and investment strategies.
By comparing the practices of Russian companies to the typical models of corporate governance and investment behaviour of big firms in the West, Dzarasov sheds light on the relationship between the core and periphery of the capitalist world-system.
This groundbreaking study shows that Russia's new capitalism is not a break with the country's Stalinist past, but in fact the continuation of that tradition.
Following his timely and well-received A Failure of Capitalism, Richard Posner steps back to take a longer view of the continuing crisis of democratic capitalism as the American and world economies crawl gradually back from the depths to which they had fallen in the autumn of 2008 and the winter of 2009.
By means of a lucid narrative of the crisis and a series of analytical chapters pinpointing critical issues of economic collapse and gradual recovery, Posner helps non-technical readers understand business-cycle and financial economics, and financial and governmental institutions, practices, and transactions, while maintaining a neutrality impossible for persons professionally committed to one theory or another. He calls for fresh thinking about the business cycle that would build on the original ideas of Keynes. Central to these ideas is that of uncertainty as opposed to risk. Risk can be quantified and measured. Uncertainty cannot, and in this lies the inherent instability of a capitalist economy.
As we emerge from the financial earthquake, a deficit aftershock rumbles. It is in reference to that potential aftershock, as well as to the government’s stumbling efforts at financial regulatory reform, that Posner raises the question of the adequacy of our democratic institutions to the economic challenges heightened by the greatest economic crisis since the Great Depression. The crisis and the government’s energetic response to it have enormously increased the national debt at the same time that structural defects in the American political system may make it impossible to pay down the debt by any means other than inflation or devaluation.
Nobel Laureate Edmund Phelps and an international group of economists argue that economic health depends on the widespread presence of certain values, in particular individualism and self-expression.
Nobel Laureate Edmund Phelps has long argued that the high level of innovation in the lead nations of the West was never a result of scientific discoveries plus entrepreneurship, as Schumpeter thought. Rather, modern values—particularly the individualism, vitalism, and self-expression prevailing among the people—fueled the dynamism needed for widespread, indigenous innovation. Yet finding links between nations’ values and their dynamism was a daunting task. Now, in Dynamism, Phelps and a trio of coauthors take it on.
Phelps, Raicho Bojilov, Hian Teck Hoon, and Gylfi Zoega find evidence that differences in nations’ values matter—and quite a lot. It is no accident that the most innovative countries in the West were rich in values fueling dynamism. Nor is it an accident that economic dynamism in the United States, Britain, and France has suffered as state-centered and communitarian values have moved to the fore.
The authors lay out their argument in three parts. In the first two, they extract from productivity data time series on indigenous innovation, then test the thesis on the link between values and innovation to find which values are positively and which are negatively linked. In the third part, they consider the effects of robots on innovation and wages, arguing that, even though many workers may be replaced rather than helped by robots, the long-term effects may be better than we have feared. Itself a significant display of creativity and innovation, Dynamism will stand as a key statement of the cultural preconditions for a healthy society and rewarding work.
The financial and economic crisis that began in 2008 is the most alarming of our lifetime because of the warp-speed at which it is occurring. How could it have happened, especially after all that we’ve learned from the Great Depression? Why wasn’t it anticipated so that remedial steps could be taken to avoid or mitigate it? What can be done to reverse a slide into a full-blown depression? Why have the responses to date of the government and the economics profession been so lackluster? Richard Posner presents a concise and non-technical examination of this mother of all financial disasters and of the, as yet, stumbling efforts to cope with it. No previous acquaintance on the part of the reader with macroeconomics or the theory of finance is presupposed. This is a book for intelligent generalists that will interest specialists as well.
Among the facts and causes Posner identifies are: excess savings flowing in from Asia and the reckless lowering of interest rates by the Federal Reserve Board; the relation between executive compensation, short-term profit goals, and risky lending; the housing bubble fuelled by low interest rates, aggressive mortgage marketing, and loose regulations; the low savings rate of American people; and the highly leveraged balance sheets of large financial institutions.
Posner analyzes the two basic remedial approaches to the crisis, which correspond to the two theories of the cause of the Great Depression: the monetarist—that the Federal Reserve Board allowed the money supply to shrink, thus failing to prevent a disastrous deflation—and the Keynesian—that the depression was the product of a credit binge in the 1920s, a stock-market crash, and the ensuing downward spiral in economic activity. Posner concludes that the pendulum swung too far and that our financial markets need to be more heavily regulated.
Intellectuals since the Industrial Revolution have been obsessed with whether, when, and why capitalism will collapse. This riveting account of two centuries of failed forecasts of doom reveals the key to capitalism’s durability.
Prophecies about the end of capitalism are as old as capitalism itself. None have come true. Yet, whether out of hope or fear, we keep looking for harbingers of doom. In Foretelling the End of Capitalism, Francesco Boldizzoni gets to the root of the human need to imagine a different and better world and offers a compelling solution to the puzzle of why capitalism has been able to survive so many shocks and setbacks.
Capitalism entered the twenty-first century triumphant, its communist rival consigned to the past. But the Great Recession and worsening inequality have undermined faith in its stability and revived questions about its long-term prospects. Is capitalism on its way out? If so, what might replace it? And if it does endure, how will it cope with future social and environmental crises and the inevitable costs of creative destruction? Boldizzoni shows that these and other questions have stood at the heart of much analysis and speculation from the early socialists and Karl Marx to the Occupy Movement. Capitalism has survived predictions of its demise not, as many think, because of its economic efficiency or any intrinsic virtues of markets but because it is ingrained in the hierarchical and individualistic structure of modern Western societies.
Foretelling the End of Capitalism takes us on a fascinating journey through two centuries of unfulfilled prophecies. An intellectual tour de force and a plea for political action, it will change our understanding of the economic system that determines the fabric of our lives.
Two leading social scientists examine the gender wealth gap in countries with officially egalitarian property law, showing how legal professionals—wittingly and unwittingly—help rich families and men maintain their privilege.
In many countries, property law grants equal rights to men and women. Why, then, do women still accumulate less wealth than men? Combining quantitative, ethnographic, and archival research, The Gender of Capital explains how and why, in every class of society, women are economically disadvantaged with respect to their husbands, fathers, and brothers. The reasons lie with the unfair economic arrangements that play out in divorce proceedings, estate planning, and other crucial situations where law and family life intersect.
Céline Bessière and Sibylle Gollac argue that, whatever the law intends, too many outcomes are imprinted with unthought sexism. In private decisions, old habits die hard: families continue to allocate resources disproportionately to benefit boys and men. Meanwhile, the legal profession remains in thrall to assumptions that reinforce gender inequality. Bessière and Gollac marshal a range of economic data documenting these biases. They also examine scores of family histories and interview family members, lawyers, and notaries to identify the accounting tricks that tip the scales in favor of men.
Women across the class spectrum—from poor single mothers to MacKenzie Scott, ex-wife of Amazon billionaire Jeff Bezos—can face systematic economic disadvantages in divorce cases. The same is true in matters of inheritance and succession in family-owned businesses. Moreover, these disadvantages perpetuate broader social disparities beyond gender inequality. As Bessière and Gollac make clear, the appropriation of capital by men has helped to secure the rigid hierarchies of contemporary class society itself.
Just as today's observers struggle to justify the workings of the free market in the wake of a global economic crisis, an earlier generation of economists revisited their worldviews following the Great Depression. The Great Persuasionis an intellectual history of that project. Angus Burgin traces the evolution of postwar economic thought in order to reconsider many of the most basic assumptions of our market-centered world.
Conservatives often point to Friedrich Hayek as the most influential defender of the free market. By examining the work of such organizations as the Mont Pèlerin Society, an international association founded by Hayek in 1947 and later led by Milton Friedman, Burgin reveals that Hayek and his colleagues were deeply conflicted about many of the enduring problems of capitalism. Far from adopting an uncompromising stance against the interventionist state, they developed a social philosophy that admitted significant constraints on the market. Postwar conservative thought was more dynamic and cosmopolitan than has previously been understood.
It was only in the 1960s and '70s that Friedman and his contemporaries developed a more strident defense of the unfettered market. Their arguments provided a rhetorical foundation for the resurgent conservatism of Barry Goldwater and Ronald Reagan and inspired much of the political and economic agenda of the United States in the ensuing decades. Burgin's brilliant inquiry uncovers both the origins of the contemporary enthusiasm for the free market and the moral quandaries it has left behind.
A Financial Times Book of the Year
A ProMarket Book of the Year
“Superbly argued and important…Donald Trump is in so many ways a product of the defective capitalism described in The Great Reversal. What the U.S. needs, instead, is another Teddy Roosevelt and his energetic trust-busting. Is that still imaginable? All believers in the virtues of competitive capitalism must hope so.”
—Martin Wolf, Financial Times
“In one industry after another…a few companies have grown so large that they have the power to keep prices high and wages low. It’s great for those corporations—and bad for almost everyone else.”
—David Leonhardt, New York Times
“Argues that the United States has much to gain by reforming how domestic markets work but also much to regain—a vitality that has been lost since the Reagan years…His analysis points to one way of making America great again: restoring our free-market competitiveness.”
—Arthur Herman, Wall Street Journal
Why are cell-phone plans so much more expensive in the United States than in Europe? It seems a simple question, but the search for an answer took one of the world’s leading economists on an unexpected journey through some of the most hotly debated issues in his field. He reached a surprising conclusion: American markets, once a model for the world, are giving up on healthy competition.
In the age of Silicon Valley start-ups and millennial millionaires, he hardly expected this. But the data from his cutting-edge research proved undeniable. In this compelling tale of economic detective work, we follow Thomas Philippon as he works out the facts and consequences of industry concentration, shows how lobbying and campaign contributions have defanged antitrust regulators, and considers what all this means. Philippon argues that many key problems of the American economy are due not to the flaws of capitalism or globalization but to the concentration of corporate power. By lobbying against competition, the biggest firms drive profits higher while depressing wages and limiting opportunities for investment, innovation, and growth. For the sake of ordinary Americans, he concludes, government needs to get back to what it once did best: keeping the playing field level for competition. It’s time to make American markets great—and free—again.
It is widely believed today that the free market is the best mechanism ever invented to efficiently allocate resources in society. Just as fundamental as faith in the free market is the belief that government has a legitimate and competent role in policing and the punishment arena. This curious incendiary combination of free market efficiency and the Big Brother state has become seemingly obvious, but it hinges on the illusion of a supposedly natural order in the economic realm. The Illusion of Free Markets argues that our faith in “free markets” has severely distorted American politics and punishment practices.
Bernard Harcourt traces the birth of the idea of natural order to eighteenth-century economic thought and reveals its gradual evolution through the Chicago School of economics and ultimately into today’s myth of the free market. The modern category of “liberty” emerged in reaction to an earlier, integrated vision of punishment and public economy, known in the eighteenth century as “police.” This development shaped the dominant belief today that competitive markets are inherently efficient and should be sharply demarcated from a government-run penal sphere.
This modern vision rests on a simple but devastating illusion. Superimposing the political categories of “freedom” or “discipline” on forms of market organization has the unfortunate effect of obscuring rather than enlightening. It obscures by making both the free market and the prison system seem natural and necessary. In the process, it facilitated the birth of the penitentiary system in the nineteenth century and its ultimate culmination into mass incarceration today.
The sociologist Thomas Sowell writes, "We need to confront the most blatant fact that has persisted across centuries of social history—vast ddifferences in productivity among peoples, and the economic and other consequences of such differences." Poverty demeans dignity, shrinks the soul, wastes potential, and inflicts suffering on three billion people on our planet. We must also acknowledge that, during the past fifty yyears, the record in international assistance to the least developed countries has been disappointing; the economics-based abstractions developed in the think tanks of Europe and North America are insufficient.
In the River They Swim is the antithesis of that search for solutions to the next big theory of global poverty. From the fresh perspective of advisors on the frontlines of development to the insight of leaders like President Paul Kagame of Rwanda and Pastor Rick Warren, it tells the story of change in the microcosms of emerging businesses, industries, and governments. These essays display a personal nature to their work that rigorous analysis alone cannot explain.
We learn that a Sufi master can teach us about the different levels of knowledge, the "different ways to know a river." These practitioners could have written about its length, its source, its depth, its width, the power of its current, and the life it contains. They could have invested time and money to travel to that river so that they could sit on its shores and look at it, feel the sand that borders it, and watch the birds at play over it. Instead, they dove in to swim in the river, felt its current along their bodies, and tasted something of it. They wondered, briefly, if they had the strength to swim its length, and now they share the answer.
If human development is a river, the authors in this volume, and perhaps some readers, will no longer be satisfied to stand along its banks.
A modern reframing of Friedrich Hayek’s most famous work for the 21st century.
Friedrich Hayek’s The Road to Serfdom was both an intellectual milestone and a source of political division, spurring fiery debates around capitalism and its discontents. In the ensuing discord, Hayek’s true message was lost: liberalism is a thing to be protected above all else, and its alternatives are perilous.
In Liberalism’s Last Man, Vikash Yadav revives the core of Hayek’s famed work to map today’s primary political anxiety: the tenuous state of liberal meritocratic capitalism—particularly in North America, Europe, and Asia—in the face of strengthening political-capitalist powers like China, Vietnam, and Singapore. As open societies struggle to match the economic productivity of authoritarian-capitalist economies, the promises of a meritocracy fade; Yadav channels Hayek to articulate how liberalism’s moral backbone is its greatest defense against repressive social structures.
A modern reframing of Friedrich Hayek’s most famous work for the 21st century.
Friedrich Hayek’s The Road to Serfdom was both an intellectual milestone and a source of political division, spurring fiery debates around capitalism and its discontents. In the ensuing discord, Hayek’s true message was lost: liberalism is a thing to be protected above all else, and its alternatives are perilous.
In Liberalism’s Last Man, Vikash Yadav revives the core of Hayek’s famed work to map today’s primary political anxiety: the tenuous state of liberal meritocratic capitalism—particularly in North America, Europe, and Asia—in the face of strengthening political-capitalist powers like China, Vietnam, and Singapore. As open societies struggle to match the economic productivity of authoritarian-capitalist economies, the promises of a meritocracy fade; Yadav channels Hayek to articulate how liberalism’s moral backbone is its greatest defense against repressive social structures.
A colorful history of US research universities, and a market-based theory of their global success.
American education has its share of problems, but it excels in at least one area: university-based research. That’s why American universities have produced more Nobel Prize winners than those of the next twenty-nine countries combined. Economist Miguel Urquiola argues that the principal source of this triumph is a free-market approach to higher education.
Until the late nineteenth century, research at American universities was largely an afterthought, suffering for the same reason that it now prospers: the free market permits institutional self-rule. Most universities exploited that flexibility to provide what well-heeled families and church benefactors wanted. They taught denominationally appropriate materials and produced the next generation of regional elites, no matter the students’—or their instructors’—competence. These schools were nothing like the German universities that led the world in research and advanced training. The American system only began to shift when certain universities, free to change their business model, realized there was demand in the industrial economy for students who were taught by experts and sorted by talent rather than breeding. Cornell and Johns Hopkins led the way, followed by Harvard, Columbia, and a few dozen others that remain centers of research. By the 1920s the United States was well on its way to producing the best university research.
Free markets are not the solution for all educational problems. Urquiola explains why they are less successful at the primary and secondary level, areas in which the United States often lags. But the entrepreneurial spirit has certainly been the key to American leadership in the research sector that is so crucial to economic success.
It is now widely agreed that mainstream macroeconomics is irrelevant and that there is need for a more useful and realistic economic analysis that can provide a better understanding of the ongoing global financial and economic crisis. Lance Taylor’s book exposes the unrealistic assumptions of the rational expectations and real business cycle approaches and of mainstream finance theory. It argues that in separating monetary and financial behavior from real behavior, they do not address the ways that consumption, accumulation, and the government play in the workings of the economy.
Taylor argues that the ideas of J. M. Keynes and others provide a more useful framework both for understanding the crisis and for dealing with it effectively. Keynes’s basic points were fundamental uncertainty and the absence of Say’s Law. He set up machinery to analyze the macro economy under such circumstances, including the principle of effective demand, liquidity preference, different rules for determining commodity and asset prices, distinct behavioral patterns of different collective actors, and the importance of thinking in terms of complete macro accounting schemes. Economists working in this tradition also worked out growth and cycle models.
Employing these ideas throughout Maynard’s Revenge, Taylor provides an analytical narrative about the causes of the crisis, and suggestions for dealing with it.
Contributors. Scott Bradwell, Jean Comaroff, John L. Comaroff, Fernando Coronil, Peter Geschiere, David Harvey, Luiz Paulo Lima, Caitrin Lynch, Rosalind C. Morris, David G. Nicholls, Francis Nyamnjoh, Elizabeth A. Povinelli, Paul Ryer, Allan Sekula, Irene Stengs, Michael Storper, Seamus Walsh, Robert P. Weller, Hylton White, Melissa W. Wright, Jeffrey A. Zimmerman
How capitalism is reconfiguring the very texture of life
Mutant Ecologies traces the spinning of new synthetic threads into the web of life. It is a critical cartography of the shifting landscapes of capital accumulation conjured by recent developments in genomic science, genome editing, and the biotech industry.
CRISPR crops, fast-growing salmons, heat-resistant Slick™ cows, Friendly™ Mosquitoes, humanized mice, pigs growing human organs – these are but a few of the dazzling new life-forms that have recently emerged from corporate and university laboratories around the world, all promising to lubricate the circuits of capital accumulation in distinct ways. The deliberate induction of genetic mutations is increasingly central to business operations in a number of sectors, from agriculture to pharmaceuticals.
While the Nobel Committee recently proclaimed the life sciences to have entered 'a new epoch', the authors show how these technological innovations continue to operate within a socio-historical context defined by the iron rules of capitalist competition and exploitation. Capital no longer contents itself by simply appropriating the living bodies of plants and animals. It purposefully designs its internal metabolism, and in that way, it redesigns the countless living vectors that constitute the global biosphere. It is driving a biological revolution, which will ripple through the everyday lives of people everywhere.
A sweeping account of three Gujarati Muslim trading communities, whose commercial success over nearly two centuries sheds new light on the history of capitalism, Islam, and empire in South Asia.
During the nineteenth century, three Gujarati Muslim commercial castes—the Bohras, Khojas, and Memons—came to dominate Muslim business in South Asia. Although these communities constitute less than 1 percent of South Asia’s Muslim population, they are still disproportionately represented among the region’s leading Muslim-owned firms today. In No Birds of Passage, Michael O’Sullivan argues that the conditions enabling their success have never been understood, thanks to stereotypes—embraced equally by colonial administrators and Muslim commentators—that estrange them from their religious identity. Yet while long viewed as Hindus in all but name, or as “Westernized” Muslims who embraced colonial institutions, these groups in fact entwined economic prerogatives and religious belief in a distinctive form of Muslim capitalism.
Following entrepreneurial firms from Gujarat to the Hijaz, Hong Kong, Mombasa, Rangoon, and beyond, O’Sullivan reveals the importance of kinship networks, private property, and religious obligation to their business endeavors. This paradigm of Muslim capitalism found its highest expression in the jamaats, the central caste institutions of each community, which combined South Asian, Islamicate, and European traditions of corporate life. The jamaats also played an essential role in negotiating the position of all three groups in relation to British authorities and Indian Muslim nationalists, as well as the often-sharp divisions within the castes themselves.
O’Sullivan’s account sheds light on Gujarati Muslim economic life from the dawn of colonial hegemony in India to the crisis of the postcolonial state, and provides fascinating insights into the broader effects of capitalist enterprise on Muslim experience in modern South Asia.
Despite deepening poverty and environmental degradation throughout rural Latin America, Mayan peasant farmers in Chiapas, Mexico, are finding environmental and economic success by growing organic coffee. Organic Coffee: Sustainable Development by Mayan Farmers provides a unique and vivid insight into how this coffee is grown, harvested, processed, and marketed to consumers in Mexico and in the north.
Maria Elena Martinez-Torres explains how Mayan farmers have built upon their ethnic networks to make a crucial change in their approach to agriculture. Taking us inside Chiapas, Mexico's poorest state and scene of the 1994 Zapatista uprising, she examines the anatomy of the ongoing organic coffee boom and the fair-trade movement. The organic coffee boom arose as very poor farmers formed cooperatives, revalued their ethnic identity, and improved their land through organic farming. The result has been significant economic benefits for their families and ecological benefits for the future sustainability of agriculture in the region.
Organic Coffee refutes the myth that organic farming is less productive than chemical-based agriculture and gives us reasons to be hopeful for indigenous peoples and peasant farmers.
Contributors. Tani E. Barlow, Nandi Bhatia, Dipesh Chakrabarty, Chungmoo Choi, Clara Connolly, Angela Davis, Arturo Escobar, Grant Farred, Homa Hoodfar, Reynaldo C. Ileto, George Lipsitz, David Lloyd, Lisa Lowe, Martin F. Manalansan IV, Aihwa Ong, Pragna Patel, José Rabasa, Maria Josefina Saldaña-Portillo, Jaqueline Urla
Hayek Book Prize Finalist
An Economist Best Book of the Year
A Foreign Affairs Best Book of the Year
From one of the world’s leading economists and his coauthors, a cutting-edge analysis of what drives economic growth and a blueprint for prosperity under capitalism.
Crisis seems to follow crisis. Inequality is rising, growth is stagnant, the environment is suffering, and the COVID-19 pandemic has exposed every crack in the system. We hear more and more calls for radical change, even the overthrow of capitalism. But the answer to our problems is not revolution. The answer is to create a better capitalism by understanding and harnessing the power of creative destruction—innovation that disrupts, but that over the past two hundred years has also lifted societies to previously unimagined prosperity.
To explain, Philippe Aghion, Céline Antonin, and Simon Bunel draw on cutting-edge theory and evidence to examine today’s most fundamental economic questions, including the roots of growth and inequality, competition and globalization, the determinants of health and happiness, technological revolutions, secular stagnation, middle-income traps, climate change, and how to recover from economic shocks. They show that we owe our modern standard of living to innovations enabled by free-market capitalism. But we also need state intervention with the appropriate checks and balances to simultaneously foster ongoing economic creativity, manage the social disruption that innovation leaves in its wake, and ensure that yesterday’s superstar innovators don’t pull the ladder up after them to thwart tomorrow’s. A powerful and ambitious reappraisal of the foundations of economic success and a blueprint for change, The Power of Creative Destruction shows that a fair and prosperous future is ultimately ours to make.
Hayek Book Prize Finalist
An Economist Best Book of the Year
A Foreign Affairs Best Book of the Year
A Financial Times Summer Reading Favorite
“Sweeping, authoritative and—for the times—strikingly upbeat…The overall argument is compelling and…it carries a trace of Schumpeterian subversion.”
—The Economist
“[An] important book…Lucid, empirically grounded, wide-ranging, and well-argued.”
—Martin Wolf, Financial Times
“Offers…much needed insight into the sources of economic growth and the kinds of policies that will promote it…All in Washington would do well to read this volume carefully.”
—Milton Ezrati, Forbes
Inequality is on the rise, growth stagnant, the environment in crisis. Covid seems to have exposed every crack in the system. We hear calls for radical change, but the answer is not to junk our economic system but to create a better form of capitalism.
An ambitious reappraisal of the foundations of economic success that shows a fair and prosperous future is ours to make, The Power of Creative Destruction draws on cutting-edge theory and hard evidence to examine today’s most fundamental economic questions: what powers growth, competition, globalization, and middle-income traps; the roots of inequality and climate change; the impact of technology; and how to recover from economic shocks. We owe our modern standard of living to innovations enabled by free-market capitalism, it argues, but we also need state intervention—with checks and balances—to foster economic creativity, manage social disruption, and ensure that yesterday’s superstar innovators don’t pull the ladder up after them.
What is it about free-market ideas that give them tenacious staying power in the face of such manifest failures as persistent unemployment, widening inequality, and the severe financial crises that have stressed Western economies over the past forty years? Fred Block and Margaret Somers extend the work of the great political economist Karl Polanyi to explain why these ideas have revived from disrepute in the wake of the Great Depression and World War II, to become the dominant economic ideology of our time.
Polanyi contends that the free market championed by market liberals never actually existed. While markets are essential to enable individual choice, they cannot be self-regulating because they require ongoing state action. Furthermore, they cannot by themselves provide such necessities of social existence as education, health care, social and personal security, and the right to earn a livelihood. When these public goods are subjected to market principles, social life is threatened and major crises ensue.
Despite these theoretical flaws, market principles are powerfully seductive because they promise to diminish the role of politics in civic and social life. Because politics entails coercion and unsatisfying compromises among groups with deep conflicts, the wish to narrow its scope is understandable. But like Marx's theory that communism will lead to a "withering away of the State," the ideology that free markets can replace government is just as utopian and dangerous.
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.
A sweeping intellectual history of the concept of economic scarcity—its development across five hundred years of European thought and its decisive role in fostering the climate crisis.
Modern economics presumes a particular view of scarcity, in which human beings are innately possessed of infinite desires and society must therefore facilitate endless growth and consumption irrespective of nature’s limits. Yet as Fredrik Albritton Jonsson and Carl Wennerlind show, this vision of scarcity is historically novel and was not inevitable even in the age of capitalism. Rather, it reflects the costly triumph of infinite-growth ideologies across centuries of European economic thought—at the expense of traditions that sought to live within nature’s constraints.
The dominant conception of scarcity today holds that, rather than master our desires, humans must master nature to meet those desires. Albritton Jonsson and Wennerlind argue that this idea was developed by thinkers such as Francis Bacon, Samuel Hartlib, Alfred Marshall, and Paul Samuelson, who laid the groundwork for today’s hegemonic politics of growth. Yet proponents of infinite growth have long faced resistance from agrarian radicals, romantic poets, revolutionary socialists, ecofeminists, and others. These critics—including the likes of Gerrard Winstanley, Dorothy Wordsworth, Karl Marx, and Hannah Arendt—embraced conceptions of scarcity in which our desires, rather than nature, must be mastered to achieve the social good. In so doing, they dramatically reenvisioned how humans might interact with both nature and the economy.
Following these conflicts into the twenty-first century, Albritton Jonsson and Wennerlind insist that we need new, sustainable models of economic thinking to address the climate crisis. Scarcity is not only a critique of infinite growth, but also a timely invitation to imagine alternative ways of flourishing on Earth.
An eye-opening portrait of global capitalism spanning 150 years, told through the history of the Tata corporation.
Nearly a century old, the grand façade of Bombay House is hard to miss in the historic business district of Mumbai. This is the iconic global headquarters of the Tata Group, a multinational corporation that produces everything from salt to software. After getting their start in the cotton and opium trades, the Tatas, a Parsi family from Navsari, Gujarat, ascended to commanding heights in the Indian economy by the time of independence in 1947. Over the course of its 150-year history Tata spun textiles, forged steel, generated hydroelectric power, and took to the skies. It also faced challenges from restive workers fighting for their rights and political leaders who sought to curb its power.
In this sweeping history, Mircea Raianu tracks the fortunes of a family-run business that was born during the high noon of the British Empire and went on to capture the world’s attention with the headline-making acquisition of luxury car manufacturer Jaguar Land Rover. The growth of Tata was a complex process shaped by world historical forces: the eclipse of imperial free trade, the intertwined rise of nationalism and the developmental state, and finally the return of globalization and market liberalization. Today Tata is the leading light of one of the world’s major economies, selling steel, chemicals, food, financial services, and nearly everything else, while operating philanthropic institutions that channel expert knowledge in fields such as engineering and medicine.
Based on painstaking research in the company’s archive, Tata elucidates how a titan of industry was created and what lessons its story may hold for the future of global capitalism.
A Financial Times Book of the Year
“The strongest documentation I have seen for the many ways in which inequality is harmful to economic growth.”
—Jason Furman
“A timely and very useful guide…Boushey assimilates a great deal of recent economic research and argues that it amounts to a paradigm shift.”
—New Yorker
Do we have to choose between equality and prosperity? Decisions made over the past fifty years have created underlying fragilities in our society that make our economy less effective in good times and less resilient to shocks, such as today’s coronavirus pandemic. Many think tackling inequality would require such heavy-handed interference that it would stifle economic growth. But a careful look at the data suggests nothing could be further from the truth—and that reducing inequality is in fact key to delivering future prosperity.
Presenting cutting-edge economics with verve, Heather Boushey shows how rising inequality is a drain on talent, ideas, and innovation, leading to a concentration of capital and a damaging under-investment in schools, infrastructure, and other public goods. We know inequality is fueling social unrest. Boushey shows persuasively that it is also a serious drag on growth.
“In this outstanding book, Heather Boushey…shows that, beyond a point, inequality damages the economy by limiting the quantity and quality of human capital and skills, blocking access to opportunity, underfunding public services, facilitating predatory rent-seeking, weakening aggregate demand, and increasing reliance on unsustainable credit.”
—Martin Wolf, Financial Times
“Think rising levels of inequality are just an inevitable outcome of our market-driven economy? Then you should read Boushey’s well-argued, well-documented explanation of why you’re wrong.”
—David Rotman, MIT Technology Review
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