An Introduction to Political Economy
Published by Polity Press
Description
Capitalism is a system of financing new ideas and technologies. Thriving on constant disruption, it expands in search of cheaper labor, and it discovers new technologies that radically change the nature of work. From the first stock markets to modern cryptocurrencies, capitalism has also created its own institutions. The resulting upheavals are not always welcomed by political forces, established businesses, or society more broadly, but controlling capitalism has always proved to be a challenge.
In this timely book, Vlad Tarko explores the meaning of capitalism, its origins, the varieties of capitalism, and its expansion to a global system. He discusses both the idealized institutions under which capitalism works best, and the reasons why capitalism often thrives even under highly imperfect institutions. Last but not least, he discusses why, despite generating unprecedented growth, capitalism suffers periodic crises of legitimacy related to inequality and uncertainty.
Understanding Capitalism is the go-to text for students of politics, philosophy, and economics, as well as a handy reference for scholars working across these fields.
Contents
1 An Unexpected Introduction to Capitalism
Capitalism and democracy
The problem of complexity
A monster summoned from the depths of human nature
What is political economy?
2 What Is “Capitalism”?
A great conceptual mess
Criteria for a good definition
The transition to mass flourishing
Mass production, mass consumption, and the expansionary nature of capitalism
Two problems with class conflict theories
Socialism is not the only alternative to capitalism
Thick concepts of capitalism
Capitalism and its alternatives
3 Before Capitalism
The early growth of commerce in Europe
From feudalism to mercantilism
The failure of Italian city states
What was so special about Britain?
The birth of American capitalism
Proto-capitalism in China
Bourgeois dignity
4 Entrepreneurship and the Scarcity of Capital
Aristotle’s flute problem
The role of entrepreneurs
Financing innovation
From traditional patronage to modern stock markets
New tools for financing new ideas
Where do good ideas come from?
Entrepreneurship is everywhere, but capitalism isn’t
Movements of capital are conditional on institutions
5 Competition and Economic Disruption
Competition as a discovery procedure
Competition, information, and economic equilibrium
The price system as a coordination device
How efficient are capital markets?
Creative destruction
Negative externalities, good and bad
Why techno-socialism is not possible
6 The World According to Adam Smith
Specialization and the emergent structure of the world economy
The invisible hand formalized
Adam Smith and the Enlightenment
The extent of the market
Productivity matters
The escape from the Malthusian trap
The importance of distributional conflict
Adding inequality to the Malthusian model
7 Varieties of Capitalism
The nature and benefits of economic freedom
Freedom and welfare states
The role of government: rowing versus steering
Freer markets, more rules?
The performance of different capitalist varieties
8 Inequality
Long-term changes in global inequality
Inequality and economic freedom
Where do the idle rich live?
Inequality and democracy
The paradox of power
9 Economic Growth under Poor Institutions
Economic convergence
Private substitutes to public institutions: the case of Vietnam
The logic of crony capitalism
How China got rich
Capitalism, democracy, and state capitalism
10 Individualism and the Future of Meaningful Work
Opportunity and responsibility
Personal authenticity in the middle of a capitalist economy
Bullshit jobs
Poverty as injustice
Meaningful work
Uncertainty and the entrepreneurial mindset
How much happiness does money bring?
The age of nihilism
11 How Capitalism Changes Culture, Morality, and Religion
The capitalist free-floating rationales
Moral consequences of capitalism
Why rich, capitalist societies are less cruel and more compassionate
The spread of women’s rights in the 19th-century United States
How institutions and norms interact
The evolution of religion as a commercial product
12 The Sustainability of Capitalism
The evenly rotating economy
The Red Queen productivity race
The importance of energy
The recent decline of growth on the frontier
The legitimacy problems of capitalism
The growth–legitimacy trade-off cycle
Vlad Tarko 