by Quinn Slobodian · 16 Mar 2018 · 451pp · 142,662 words
a page from the European playbook to find a solution by extending the economic constitution beyond Europe itself. As challenges to the uniform rules of liberal capitalism mounted from the Global South in the 1970s, Europe and its laws became a countermodel to the demands for a New International Economic Order. The
by Paul Kingsnorth · 23 Sep 2025 · 388pp · 110,920 words
great totalitarian ideologies of the twentieth century. Communism and fascism—in reality variations on the same theme—sold themselves as alternatives to the ‘decadence’ of liberal capitalism. Both promised to create universalist utopian societies, but both were in fact Machine ideologies—arguably the purest manifestation of the politics of the Machine yet
by Jason Burke · 21 May 2025 · 323pp · 108,377 words
the triumph of American or Western liberal democracy and the societies that had produced it. The new push to globalization and the interconnectivity allowed by liberalized capital markets and advances in communications technology seemed only to confirm the planetary dominance of the package of ideas, economic theories, moral and ethical norms and
by Mark Blyth · 24 Apr 2013 · 576pp · 105,655 words
Press, 1962). 6. Woo Cummings, ed., The Developmental State (Ithaca, NY: Cornell University Press 1999); but also Wolfgang Streek and Yamamura, The Origins of Non-Liberal Capitalism (Cambridge: Cambridge University Press 2002). 7. Gerschenkron, Economic Backwardness; and Leonard Seabrooke, The Social Sources of Financial Power (Ithaca, NY: Cornell University Press, 2006). 8
by Nigel Dodd · 14 May 2014 · 700pp · 201,953 words
from Hilferding and Lenin. In Finance Capital (originally published in 1910, 2007 cited here), Hilferding sought to capture the transition from a competitive and pluralistic “liberal” capitalism toward a monopolistic form of capitalism in which finance had a crucial role. In particular, he focused on the merger, which he saw taking place
by Robert Skidelsky · 13 Nov 2018
could have become the basis of policy only under conditions of social balance. His was the economics of the middle way; the best deal that liberal capitalism could expect in a world veering towards the political extremes. He thought of his economics as the economics of the general interest, for it encompassed
by Alex Zevin · 12 Nov 2019 · 767pp · 208,933 words
India, Australia and the Gold Coast (where she grew close to Kwame Nkrumah).111 By then Ward was a star, crisscrossing the globe to extol liberal capitalism as a test of ‘faith and freedom’ – and now to far more powerful audiences, US Democrats like Adlai Stevenson, John Kennedy and Lyndon Johnson.112
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celebrity editor gave a great deal more freedom to his two deputies – Brian Beedham and Norman Macrae – each equally influential in their domains, both convinced liberal capitalism must fight communism to some final reckoning. How did the Economist represent the battlefields of the US Empire, which took that fight direct to the
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: in a backward country like Brazil or Chile, or in a poor black neighbourhood in America or Britain, democracy could easily become the enemy of liberal capitalism. Richard Nixon, with scant respect for the former, received barely a slap on the wrist over Watergate. The Economist viewed the affair as a mildly
by Karl Polanyi · 27 Mar 2001 · 495pp · 138,188 words
being exploited, were economically the gainers and to argue the need for social protection against a system that benefited all was obviously impossible. Critics of liberal capitalism were baffled. For some seventy years, scholars and Royal Commissions alike had denounced the horrors of the Industrial Revolution, and a galaxy of poets, thinkers
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suspending the gold standard, had taken a decisive step toward a transformation. During World War II this was accompanied by changes in the methods of liberal capitalism. However, these latter were not meant to be permanent and did not, therefore, remove the country from the danger zone. In all important European countries
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exchanges and free internal markets). Primacy of exchanges involved no less a sacrifice than that of free markets and free governments—the two pillars of liberal capitalism. Geneva thus represented a change in aim, but no change in method: while the inflationary governments condemned by Geneva subordinated the stability of the currency
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were tried, it would everywhere produce sickness unto death. That is the manner in which civilizations perish. The fascist solution of the impasse reached by liberal capitalism can be described as a reform of market economy achieved at the price of the extirpation of all democratic institutions, both in the industrial and
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. Capitalism was proclaimed restored. Both Bolshevism and fascism were liquidated except in peripheric regions. The Comintern declared the consolidation of capitalism a fact; Mussolini eulogized liberal capitalism; all important countries except Great Britain were on the upgrade. The United States enjoyed a legendary prosperity, and the Continent was doing almost as well
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a democratic public opinion merely served to emphasize the superlative importance of free institutions of discussion and decision. Russia turned to socialism under dictatorial forms. Liberal capitalism disappeared in the countries preparing for war like Germany, Japan, and Italy, and, to a lesser extent, also in the United States and Great Britain
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start lasted as long as the liquidation of the outworn system of the nineteenth century permitted her to keep in the lead. The destruction of liberal capitalism, of the gold standard, and of absolute sovereignties was the incidental result of her marauding raids. In adjusting to an isolation sought by herself and
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P T E R S E V E N 8. The Literature of Speenhamland Only at the beginning and the end of the age of liberal capitalism do we find a consciousness of the decisive importance of Speenhamland. There was, of course, both before and after 1834 constant reference to the “allowance
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from the unemployment fund in order to “make up” wages and thus help to increase employment. On the unemployment issue as on the currency issue, liberal capitalism in its death throes was faced with the still unsolved problems bequeathed to it by its beginnings. 9. Poor Law and the Organization of Labor
by Branko Milanovic · 23 Sep 2019
political elites. It is also attractive to many ordinary people because of the high growth rates that it seems to promise. On the other hand, liberal capitalism has many well-known advantages, the most important being that democracy and the rule of law are values in themselves and both, arguably, can
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a self-perpetuating upper class and polarization between the elites and the rest, that represents the most important threat to the longer-term viability of liberal capitalism. This threat is a danger both to the system’s own survival and to the general attractiveness of the model to the rest of
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more unequal than classical capitalism (Milanovic 2016, chap. 2). I have not included here the forces of redistribution, through direct taxes and transfers, which liberal capitalism has “inherited” from social-democratic capitalism and which classical capitalism lacked. These forces do reduce inequality below the level determined by market income alone. Second
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, a “yes” score on an individual characteristic does not tell us how strongly that characteristic advances inequality. For example, while both classical and liberal capitalism have a high concentration of capital income, the level of concentration was much greater under the classical form. Around 1914, 70 percent of British wealth
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United States and other countries is a result of the increasing skill premium paid to more educated labor, which is not a systemic feature of liberal capitalism. This rising premium is due to a shortage in the supply of highly skilled labor and to technological change that has made skilled labor
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more productive and thus in greater demand (Goldin and Katz 2010). But nothing fundamental to liberal capitalism prevents an adequate increase in the supply of highly skilled labor. There are no legal obstacles preventing people from going on to advanced studies;
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higher education is either free or relatively cheap. The lack of response of labor to technological change does not result from systemic factors intrinsic to liberal capitalism. To better understand the difference between systemic and nonsystemic factors, take the first characteristic of capitalism discussed in the previous section, the rising share
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from the equalization of access to education for women and men, which itself stems from a systemic feature of meritocratic (and even more so of liberal) capitalism: commitment to the equal treatment of all individuals regardless of gender, race, sexual orientation, and the like. There is an additional, more subtle, reason
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that Rawls introduces is taxation of inheritance. That, combined with free schooling, brings us into the system of Rawls’s liberal equality (what I call “liberal capitalism” in this book). Therefore, inheritance tax, which is desirable in itself (according to Rawls and others who care about equality of opportunity), can also
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here) is associated with, and prospers, in liberal meritocratic capitalism? There is no doubt that, to use Pareto’s terminology, the ruling class in liberal capitalism is composed of foxes. It does not use militaristic means to retain power, and it has other characteristic features that I have discussed in this
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a perfectly understandable movement from an inferior, dead-end system (communism) back onto the straight path leading to the end point of human evolution: liberal capitalism. It is worth stopping here for a moment to note how similarly communism and fascism are treated from the liberal point of view. Fascism was
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have endured tremendous material and human losses, they were eventually able to return to the normal path and progress to a higher socioeconomic system, namely liberal capitalism. Thus, the liberal explanation for the place of communism within twentieth-century history is relatively coherent and has the advantage of treating symmetrically all
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see below, this remarkable performance of political capitalist countries is something that puts them, at least if prosperity is a key criterion, in competition with liberal capitalism as to the best way to organize society. Whether this gap in performance will remain in the future is not obvious: as China, Vietnam,
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China from 2003 to 2013, tried to adopt. Some analysts saw Hu’s strategy, wrongly, as a first move toward the ultimate objective of liberal capitalism. Although that was not the objective, it is nevertheless true that a more law-observant political capitalism begins to look much more like
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conservative; it leaves the basic features of political capitalism unchanged, does not reduce the power of bureaucracy, and keeps the ideological gap between political and liberal capitalism as wide as before. But it stabilizes political capitalism. Since corruption is endemic to political capitalism, it is impossible to eradicate it. To do
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so, the system would either have to change in the direction of liberal capitalism or would have to become autarkic. Autarkic systems, for the reasons explained in Chapter 4, do not have difficulties keeping corruption in check (but
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,” compared with the analogous group in the West, because the role of the state and state bureaucracy is greater under the conditions of political than liberal capitalism. The capitalists’ lack of political importance echoes aspects of the social structure in medieval China. According to Jacques Gernet (1962), wealthy merchants in Song
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system’s intrinsic attractiveness, along with China’s willingness to promote and “export” it in the way that the United States has been “exporting” liberal capitalism since the time of Woodrow Wilson. We must keep in mind that the attractiveness of a system has to be discussed in terms of its
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between the multitude of ownership arrangements and the uneven application of the rule of law (the “zones of lawlessness” mentioned above). In the eyes of liberal capitalism, both are anomalies: ownership structure should be rectified so that is clear who owns what, and the law should apply equally to all. If
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instrumental devices for maximizing the satisfaction of prior, private wants [of citizens]—nothing more” (Krouse 1982, 449). But this is exactly true: and if liberal capitalism can satisfy those wants, so can political capitalism. Which one does it better is an empirical question. Acceptance of moderate corruption I have argued above
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as the example of the special economic zones shows. The difference in developmental emphasis (infrastructure versus institution-building) precisely matches the distinction between political and liberal capitalisms: through their preferred development strategies, both try to play to their strong suit. The strong selling point of political capitalism is state efficiency—the fact
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that it can bring private actors to build something that improves peoples’ ordinary lives in tangible, material ways. The selling point of liberal capitalism is that the state is there to set the institutional framework within which private actors will decide on their own what (if anything) is the
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foreign policies. If China continues with a passive role where it does not advertise its own institutions, while the West continues advancing the values of liberal capitalism onto China, it is more likely that such Western institutions will become increasingly popular and supported by large swaths of the Chinese population. But
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globalization, and it is made possible thanks to the mobility of capital. But in addition, both political capitalism and the trend toward plutocratic rule in liberal capitalism “normalize” it. I have argued in Chapter 3 that corruption is an intrinsic part of political capitalism. The time has come to normalize corruption:
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transmit to their children all the privileges that, as we saw in Chapter 2, lead to the creation of a self-perpetuating upper class in liberal capitalism. This is why Barack Obama, despite all of the rhetorical embellishments about public education in his speeches, sent both of his daughters to an
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question leads us to consider the competition between the two types of capitalism that I have considered in this book. 5.4b Political Capitalism versus Liberal Capitalism I discussed in Chapters 2 and 3 the roles that the United States and China play as the leading exponents of, respectively, liberal and
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capitalism. At the more abstract level, we should consider the advantages of the two types of capitalism independently from their main promoters. The advantage of liberal capitalism resides in its political system of democracy. Many people (but not all) regard democracy as a “primary good”—desirable in itself and thus not
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consistently making wrong (or irrational) choices for a long time. This seems unlikely. Trade-off between income and political freedom Against these advantages of liberal capitalism, political capitalism promises much more efficient management of the economy and higher growth rates. This is not a small advantage, especially if high income and
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prove its superiority and ward off a liberal challenge (that is, to be selected by people in preference to liberal capitalism), political capitalism needs to constantly deliver high rates of growth. So while liberal capitalism’s advantages are “natural,” or to put it differently, are built into the setup of the system, the
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of the absence of democratic checks, and (ii) an inherent tendency toward corruption because of the absence of the rule of law. Relative to liberal capitalism, political capitalism has a greater tendency to generate bad policies and bad social outcomes that cannot be reversed because those in power do not have
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to change course. It can also, quite easily, engender popular dissatisfaction due to its systemic corruption. Both of these “scourges” are less important in liberal capitalism. Political capitalism therefore needs to sell itself on the grounds of providing better societal management, higher rates of growth, and more efficient administration (including administration
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of justice). Unlike liberal capitalism, which can take a more relaxed attitude toward temporary problems, political capitalism, if it is to succeed, must be permanently on its toes. This
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conclude by summarizing the past development of Western capitalist societies and speculating on what the future holds. I first outline the three types of existing liberal capitalism (defined in Chapter 2) and two other hypothetical types, people’s capitalism and egalitarian capitalism, which have never existed in reality. I then set
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rich to control the political process and form a durable upper class. Or convergence of liberal and political capitalisms? An altogether different evolution of liberal capitalism would be a movement toward a plutocratic and ultimately political capitalism. This scenario is also possible—and the stronger the plutocratic features in today’s
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liberal capitalism become, the more likely such an evolution is. It would be an evolution to a large extent compatible with the interests of the new
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elite that is being formed under liberal capitalism. It would enable the elite to be much more autonomous from the rest of society. In fact, as shown in Chapter 2, the preservation
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control of the political domain, what I called “tying up the knot on wealth and power.” The more economic and political power in liberal capitalism become united, the more liberal capitalism becomes plutocratic and comes to resemble political capitalism. In the latter, political control is the way to acquire economic benefits; in plutocratic, formerly
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liberal, capitalism, economic power is used to conquer politics. The end point of the two systems becomes the same: unification and persistence of the elites. Elites
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take politics out of people’s minds, which can be more easily done when disenchantment and lack of interest in democratic politics are high. If liberal capitalism were to evolve toward political capitalism, it would display all or most of the features that I discussed in Chapter 3. A very effective
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not fit in this scheme not only because their colonial status was (to say the least) unclear, but because after 1991 they have moved toward liberal capitalism, even if in some of them (including Belarus, Russia, Uzbekistan, Kazakhstan, and Azerbaijan) a quasi- or fully single-party system has been maintained. 29.
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, Gerald, 25 Davis, Jonathan, 41 Decentralized authoritarianism, in China, 123–125 Decommodification, forces of, 255–256n23 Democracy: capitalism and, 9; in China, 117–118; liberal capitalism and, 208–209; movement toward oligarchy, 56; the rich and funding of political process in, 57–58 Democracy and Capitalism (Bowles & Gintis), 209–210 Democratically
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39; wage inequality and, 50. See also Public education Educational ceiling, 44 Egalitarian capitalism, 46, 216 Einstein, Albert, 207 Elite: characteristics of ruling elite in liberal capitalism, 65–66; corruption and Chinese, 107–112; education of, 59–62, 65–66; plutocratic political capitalism and, 217–218; political capitalism and, 93–94.
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technological progress and, 197–205; global inequality and geopolitical changes, 211–214; leading toward people’s capitalism and egalitarian capitalism, 215–218; political capitalism vs. liberal capitalism, 207–211; war and peace, 205–207 Global capitalism, globalization and, 153–155 Global GDP: China’s share of, 9, 10; Germany’s share
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112–128; economic rise of Asia and, 5–6; “export” of Chinese, 118–128; inequality in China and, 98–112; key features of, 91–98; liberal capitalism vs., 207–211; place of communism in history and, 68–78; plutocratic, 217–218; possible evolution of, 215–218; role of communist revolutions in bringing
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; global value chains and, 148 Protestant Ethic and the Spirit of Capitalism, The (Weber), 91 Protestantism, capitalism and, 179 Protocommmunist policies, 46 Public education: liberal capitalism and, 13, 43–44; need for increase in funding and improvement of, 217. See also Education Public funding of political campaigns, 217 Public sphere, interaction
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capital ownership in, 26–31; concentration of wealth and direct ownership of stock in, 35–36; decline in absolute mobility in, 42, 241n35; “export” of liberal capitalism, 112–113; flows of people within, 138; GDP per capita growth rate in, 86; growth rate in, 235; immigration and, 52, 54–55, 145
by Janek Wasserman · 23 Sep 2019 · 470pp · 130,269 words
more coordinated reaction against the threats that Mises, Hayek, and the Chicagoans had identified. The Good Society initiated a transnational conversation about the salvation of liberalism, capitalism, and democracy. The Austrians were at the center of these developments as theorists, organizers, and ideologues.41 Lippmann’s The Good Society inspired many European
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