The Concept of Capitalism
A single system of economic governance – capitalism – prevails in the world today, both in theory and in practice. Yet there is neither a standard definition of capitalism nor a theory of how it works. Moreover, the most common conception of capitalism is
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Bruce R. Scott
The Concept of Capitalism
Professor Bruce R. Scott Harvard Business School Boston, MA 02163 USA
ISBN 978-3-642-03109-0 e-ISBN 978-3-642-03110-6 DOI 10.1007/978-3-642-03110-6 Springer Dordrecht Heidelberg London New York Library of Congress Control Number: 2009931691 © Springer-Verlag Berlin Heidelberg 2009 This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer. Violations are liable to prosecution under the German Copyright Law. The use of general descriptive names, registered names, trademarks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. Cover design: WMXDesign GmbH, Heidelberg, Germany Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)
Table of Contents
Preface – Page VII Chapter 1 – Page 1 INTRODUCTION Chapter 2 – Page 7 HISTORICAL CONCEPTIONS OF CAPITALISM Chapter 3 – Page 11 SOME CURRENT CONCEPTIONS OF CAPITALISM: DISCUSSION AND CRITIQUE Chapter 4 – Page 21 MY CONCEPTION OF CAPITALISM Chapter 5 – Page 39 POLITICAL AUTHORITY SHAPES CAPITALISM WITH VISIBLE HUMAN AGENCY Chapter 6 – Page 61 THE POLITICAL AND ECONOMIC SYSTEMS ARE INTERDEPENDENT Chapter 7 – Page 67 CONCLUSIONS Epilogue – Page 73 WHY THIS SHORT BOOK AND WHY NOW?
Preface
T
his monograph on the concept of capitalism is the intellectual core of a larger work, entitled Capitalism, Its Origins and Evolution as a System of Governance, due for publication November 2009.
The purpose of this monograph is to put forth an original concept of capitalism as a system of governance, including a theory of how it functions at any point in time and how it evolves through time. In the larger book, I present a theory of its origins and evolution and support this theory with a set of country case studies that span both time and geography. It was, in fact, my experience in studying these case studies that led me to the concept presented here as well as to the theory of capitalism’s origins and evolution. In the larger book, I build on the present work, identifying and explaining capitalism as a system of governance for political entities such as nation states. I then supplement these ideas with a description and explanation of three generic economic strategies. Taken together, my studies of economic strategies and specific capitalist systems of governance are intended to enhance and enrich existing literature on “varieties of capitalism”. The larger book also includes two appendices; the first e
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