A few centuries ago, capitalism set in motion an explosion of economic productivity. Markets and private property had existed for millennia, but what other key institutions fostered capitalism’s relatively recent emergence? Until now, the conceptual toolkit available to answer this question has been inadequate, and economists and other social scientists have been diverted from identifying these key institutions.          

With Conceptualizing Capitalism, Geoffrey M. Hodgson offers readers a more precise conceptual framework. Drawing on a new theoretical approach called legal institutionalism, Hodgson establishes that the most important factor in the emergence of capitalism—but also among the most often overlooked—is the constitutive role of law and the state. While private property and markets are central to capitalism, they depend upon the development of an effective legal framework. Applying this legally grounded approach to the emergence of capitalism in eighteenth-century Europe, Hodgson identifies the key institutional developments that coincided with its rise. That analysis enables him to counter the widespread view that capitalism is a natural and inevitable outcome of human societies, showing instead that it is a relatively recent phenomenon, contingent upon a special form of state that protects private property and enforces contracts. After establishing the nature of capitalism, the book considers what this more precise conceptual framework can tell us about the possible future of capitalism in the twenty-first century, where some of the most important concerns are the effects of globalization, the continuing growth of inequality, and the challenges to America’s hegemony by China and others.

In From Pleasure Machines to Moral Communities, Hodgson casts a critical eye on neoclassical individualism, its foundations and flaws, and turns to recent insights from research on the evolutionary bases of human behavior. He focuses his attention on the evolution of morality, its meaning, why it came about, and how it influences human attitudes and behavior. This more nuanced understanding sets the stage for a fascinating investigation of its implications on a range of pressing issues drawn from diverse environments, including the business world and crucial policy realms like health care and ecology.

 

This book provides a valuable complement to Hodgson’s earlier work with Thorbjørn Knudsen on evolutionary economics in Darwin’s Conjecture, extending the evolutionary outlook to include moral and policy-related issues.

The Left is in crisis. Despite global economic turbulence, left-wing political parties in many countries have failed to make progress in part because they have grown too ideologically fragmented. Today, the term Left is associated with state intervention and public ownership, but this has little in common with the original meaning of the term. What caused what we mean by the Left to change, and how has that hindered progress?

With Wrong-Turnings, Geoffrey M. Hodgson tracks changes in the meaning of the Left and offers suggestions for how the Left might reclaim some of its core values. The term Left originated during the French Revolution, when revolutionaries sought to abolish the monarchy and privilege and to introduce a new society based on liberty, equality, fraternity, and universal rights. Over time, however, the meaning radically changed, especially through the influence of socialism and collectivism. Hodgson argues that the Left must rediscover its roots in the Enlightenment and readopt Enlightenment values it has abandoned, such as those concerning democracy and universal human rights. Only then will it be prepared to address contemporary problems of inequality and the survival of democracy. Possible measures could include enhanced educational provisions, a guaranteed basic income, and a viable mechanism for fair distribution of wealth.

Wrong-Turnings is a truly pathbreaking work from one of our most prolific and respected institutional theorists. It will change our understanding of how the left got lost.