The Future of Capitalism
Page 27
Keynes, John Maynard, 115
General Theory (1936), 47
kindergartens, 163
Knausgård, Karl Ove, 173
knowledge revolution, 126, 127–8
Kranton, Rachel, 35, 50–51
Krueger, Anne, 141
Krugman, Paul, 47
labour market
flexicurity concept, 178
function of, 176–7
and globalization, 192, 194–6
and immigration, 194, 195, 196
investment in skills, 176–7
job security, 176, 177
and low productivity-low cost business model, 173–4
minimum wage strategies, 147, 174, 176, 180
need for reductions in working hours, 189
need for renewed purpose in work, 190
regulation of, 174, 189
and robotics revolution, 178–9
role of state, 177–8, 189
see also unemployment
Labour Party, 49, 206
Marxist take-over of, 9, 204–5
language, 31, 32, 33, 39–40, 54, 57
Larkin, Philip, 99, 156
lawyers, 13–14, 45
Buiter’s three types, 186
and shell companies, 193, 194
surfeit of, 186–7
taxation of private litigation proposal, 187–8
Le Pen, Marine, 5, 63, 125, 202, 204
leadership
and belief systems, 41–2, 43, 95
building of shared identity, 39–42, 49, 68, 114–16
changing role of, 39
and flattening of hierarchies, 39
and ISIS, 42
political achievements in post-war period, 113–16, 122
and pragmatist philosophy, 22
and shared purpose in firms, 39–40, 41, 71–5
strategic use of morality, 39–40, 41
transformation of power into authority, 39, 41–2, 57
League of Nations, 116
Lee Kwan Yew, 22, 147
Lehman Brothers, 71*, 76
liberalism, 30
libertarianism, 12–13, 15
New Right failures, 16, 21
Silicon Valley, 37–8
lobbying, 85, 141
local government, 182, 183
London, 3, 125, 127–8, 165–6, 193
impact of Brexit on, 131, 196
migration to, 195–6
Macron, Emmanuel, 67, 204
Manchester terror attack (2017), 212, 213
market economy, 19, 20, 21, 25, 48
and collapse of clusters, 129–30, 144–5
failure over pensions, 180
failure over skill-formation, 173–4
mutual benefit from exchange, 28
market fundamentalists, 147, 150
marriage
assortative mating, 35, 99–100, 154, 188–9
cohabitation prior to, 99, 100
as ‘commitment technology’, 109, 155–6
divorce rates, 98, 99, 100–101, 102, 103
and female oppression, 156
religious associations, 109, 156
and rent-seeking, 141
‘shotgun weddings’, 103
and unemployment, 103
Marxism, 13*, 26, 30, 43, 47, 113, 203, 214
alienation concept, 17–18
and the family, 36–7
late capitalism concept, 6
takeover of Labour Party, 9, 204–5
and ‘useful idiots’, 205*
view of the state, 37
Maxwell, Robert, 80
May, Theresa, 205
Mayer, Colin, 18, 70
media celebrities, 6, 112, 204
Mélenchon, Jean-Luc, 5, 202, 204
mental health, 157, 158–9, 162
Mercier, Hugo, 29
meritocratic elites, 3–4, 5, 12–17, 20
Rawlsian vanguard, 13–14, 30, 49–50, 53, 67, 112, 113, 201, 202, 203, 214
Utilitarian vanguard, 9–10, 11–13, 15–16, 18, 52, 53, 59, 66–7, 209
see also Utilitarianism
WEIRD (Western, Educated, Industrial, Rich and Developed), 3–4, 12, 14, 16, 17, 20, 116, 121, 133, 214*
and white working class, 5, 16
Merkel, Angela, 14, 205
metropolitan areas, 3, 4, 7, 16, 19, 48, 125
co-ordination problem over new clusters, 145–50, 207
economies of agglomeration, 18, 19, 129, 131, 133–44, 195, 196, 207
gains from public goods, 134–5, 138–9
migration to, 195–6
political responses to dominance of, 131–2
scale and specialization in, 126–8, 130, 144–5
and taxation, 131, 132–43, 187, 207
Middle East, 192
Middleton, Kate, 188–9
migration, 121, 194–8, 203
as driven by absolute advantage, 20, 194–5, 208–9
and housing market, 182, 183
Mill, John Stuart, 9–10
minimum wage strategies, 147, 174, 176, 180
Mitchell, Andrew, 188
Mitchell, Edson, 78
modernist architecture, 12
Monarch Airlines, 75
monopolies, natural, 86–7, 88
and asymmetric information, 88, 90
auctioning of rights, 88–9
taxation of, 91–2
utility services, 86, 89, 90
‘moral hazard’, 179
morality and ethics
deriving from values not reason, 27, 28–9, 42–3
and economic man, 10, 19, 25, 26–7, 31, 34–5
and empathy, 12, 27
evolution of ethical norms, 35–6
Haidt’s fundamental values, 11–12, 14, 16, 29, 42–3, 132–3
and market economy, 21, 25, 28, 48
and modern capitalism, 25–6
and new elites, 3–4, 20–21
Adam Smith’s theories, 26–8
use for strategic purposes, 39–40, 41
and Utilitarianism, 9–10, 11, 14, 16, 55, 66–7, 209, 214
motivated reasoning, 28–9, 36, 86, 144, 150, 167
Museveni, President, 121
narratives
and childhood mentors, 169–70
and consistency, 41, 67, 81, 96
conveyed by language, 31, 33, 57
detachment from place by e-networks, 38, 61–2
and heyday of social democracy, 49
and identity formation, 32
mis-ranking of cognitive and non-cognitive training, 174–6
moral norms generated from, 33, 97–8
and purposive action, 33–4, 40–41, 42, 68
and schools, 165
of shared identity, 53–6, 81
use of by leaders, 39–42, 43, 49, 80–81
see also belonging, narrative of; obligation, narrative of; purposive action
National Health Service (NHS), 49, 159
national identity
and citizens-of-the-world agenda, 59–61, 63, 65
contempt of the educated for, 53, 59, 60–61, 63
and distinctive common culture, 37†, 63
established in childhood, 32
esteem from, 51–3
fracture to skill-based identities, 3–5, 51–6, 78
legacy of Second World War, 15, 16
methods of rebuilding, 64, 65–8, 211–15
and new nationalists, 62–3, 67, 203, 204, 205
patriotism narrative, 21, 63, 67, 215
place-based identity, 51–6, 65–8, 211–14, 215
and polarization of society, 54–5
and secession movements, 58
unravelling of shared identity, 15, 50, 51–6, 57*, 58–61, 63, 215
and value identity, 64–5
National Review, 16
nationalism, 34
based on ethnicity or religion, 62–3
capture of national identity notion by, 62, 67, 215
and narratives of hatred, 56, 57, 58–
9
and oppositional identities, 56–7, 58–9, 62–3, 68, 215
traditional form of, 62
natural rights concept, 12, 13
Nestlé, 70, 71
Netherlands, 206
networked groups
as arena for exchanging obligations, 28
and ‘common knowledge’, 32–3, 34, 54, 55, 66, 212
decline of civil society networks/ groups, 180–81
and early man, 31
evolution of ethical norms, 35–6
exclusion of disruptive narratives, 34
families as, 97–8
leadership’s use of narratives, 39–42, 49
narratives detached from place, 38, 61–2
value-based echo-chambers, 38, 61–2, 64–5, 212, 215
see also family; firms
Neustadt, Richard, 39*
New York City, 5, 125, 128, 143–4, 193
NGOs, 71, 118, 157–8
‘niche construction’, 35*, 36*
Nigeria, 58
Noble, Diana, 149*
Norman, Jesse, 21–2†
North Atlantic Treaty Organization (NATO), 114, 115, 116, 117
North Korea, 85
Northern League, Italy, 58
Norway, 63, 206, 208–9
Nozick, Robert, 14–15
obligation, narrative of, 11, 12–13, 16, 19, 29, 33
and collapse of social democracy, 53–6, 210
entitled individual vs family obligation, 99–103, 104–6, 108–9, 210
in ethical world, 112, 113–22
and expansion of post-war ‘clubs’, 117–18, 210
fairness and loyalty instilled by, 34
heyday of the ethical state, 48–9, 68, 196–7
and immigration, 196–7
and leadership, 39, 40–41, 49
‘oughts’ and ‘wants’, 27, 28, 33, 43
and secession movements, 58
and Adam Smith, 27, 28
see also reciprocity; rescue, duty of
oil industry, 192
Organization for Economic Co-operation and Development (OECD), 114–15, 125
Orwell, George, Nineteen Eighty-Four (1949), 5
Oxford university, 7, 70, 100
Paris, 5, 7, 125, 128, 174, 179
patriotism, 21, 63, 67, 215
Pause (NGO), 157–8
pension funds, 76–7, 79–81, 179–80, 185
Pew Research Center, 169
Pinker, Steven, 12*
Plato, The Republic, 9, 11, 12, 15, 43
Playboy magazine, 99
political power
and holders of economic rent, 135–6, 144
leadership selection systems in UK, 204–5, 206
minimum age for voting, 203
need to restore the centre, 205–7
polarization within polities, 38, 63, 202–5
polities as spatial, 38, 61–2, 65, 68, 211–13
and shared identity, 8, 57–61, 65, 114–16, 211–15
transformation into authority, 41–2, 57–8
trust in government, 4, 5, 48, 59, 210, 211–12
populism, political, 6, 22, 43, 58–9, 202
and geographic divide, 130–31
headless-heart, 30, 60, 112, 119, 121, 122
media celebrities, 6, 112, 204
pragmatism as opposed to, 30
and US presidential election (2016), 5, 203–4
pragmatist philosophy, 6, 9, 19, 21, 21–2†, 46, 201
author’s proposed policies, 19–20, 21, 207–15
limitations of, 30
and Macron in France, 204
and migration, 198
and post-war settlement, 113, 116, 122
and social democracy, 18, 201–2
successful leaders, 22
and taxation, 132, 207
and teaching methods, 166–7
values and reason, 29–30, 43–4
proportional representation, 206
protectionism, 113, 114, 130–31
psychology, social, 16, 54
co-ordination problems, 32–3
esteem’s trumping of money, 174
Haidt’s fundamental values, 11–12, 14, 16, 29, 42–3, 132–3
narratives, 31, 32, 33–4, 38, 39–42, 49, 53–6
norms, 33, 35–6, 39, 42–3, 44, 97–8, 107–8
‘oughts’ and ‘wants’, 27, 28, 33, 43
personal achievement vs family obligation, 99–103, 104–6, 108–9, 210
‘theory of mind’, 27, 55
Public Choice Theory, 15–16
public goods, 134–5, 138–9, 186, 202, 213
public ownership, 90
Puigdemont, Carles, 202
purposive action, 18, 21, 25, 26, 34, 40*, 53–4, 68, 112, 211–13
autonomy and responsibility, 38–9
and belonging narrative, 68, 98, 114, 211, 212, 213
in Bhutan, 37†
decline in ethical purpose across society, 48
and heyday of social democracy, 47, 49, 114
and narratives, 33–4, 40–41, 42, 68
in workplace, 190
Putnam, Robert, 45–6, 106
Bowling Alone, 181
‘quality circles’, 72–3
Rajan, Raghuram, 178
Rand, Ayn, 32
rational social woman, 31, 50–51, 196
Rawls, John, 13–14
Reagan, Ronald, 15, 26
Reback, Gary, 90
reciprocity, 9, 19, 31, 212–15
and belonging, 25, 40–41, 49, 53–6, 67, 68, 98, 181, 182, 210–11, 212–13
and collapse of social democracy, 11, 14, 53–6, 58–61, 201, 210
and corporate behaviour, 95
in ethical world, 112, 113–15, 116
and expansion of post-war ‘clubs’, 117–18, 210
fairness and loyalty as supporting, 29, 31, 34
and the family, 97–8, 101, 102
and geographic divide, 125
heyday of the ethical state, 48–9, 68, 96, 196–7, 201
and ISIS, 42
Macron’s patriotism narrative, 67
nineteenth-century co-operatives, 8
rights matched to obligations, 44–5
and three types of narrative, 33, 34, 40–41
transformation of power into authority, 39, 41–2, 57–8
Refuge (Betts and Collier), 27
refugees, 14, 27, 115, 119–20, 213
regulation, 87–90
and globalization, 193–4
of labour market, 174
religion, 56–7, 62–3, 109, 156
religious fundamentalism, 6, 30, 36–7, 212, 213, 215
rent-seeking concept, 140–41, 150, 186, 187–8, 195
rescue, duty of, 40, 54, 119–21, 210, 213
as instrument for ethical imperialism, 117–18, 210
as not matched by rights, 44, 45, 117
and post-war settlement, 113, 115–16
restoring and augmenting autonomy, 121–2
and stressed young families, 163
term defined, 27, 112
value of care as underpinning, 29
retirement pensions, 179–80
rights ideology
and corresponding obligations, 44–5
emergence in 1970s, 12–14
human rights lobby, 112, 118, 118*
individualism as rampant in recent decades, 19, 214–15
and lawyers, 13–14, 45
Libertarian use of, 12–13, 14–15
natural rights concept, 12, 13
and New Right, 12–13, 14–15, 53
Rawls’ disadvantaged groups, 3–4, 13–14, 16, 50, 53, 112, 121, 203–4, 214
‘rights of the child’ concept, 103–4
and Utilitarian atate, 12–14
see also individualism
Romania, communist, 32, 36
Rotherham, ‘Grimm and Co’, 168–9
rule of law, 138–9, 186
Rwanda, 22
Salmond, Alex, 202
Sandel, Michael, 105
Sanders, Bernie, 9, 64, 202, 203
Sarkozy, Nicolas, 204
Schultz, Martin, 14
Schumpeter, Joseph, 21*
Scotland, 58
Seligman, Martin, 108–9
sexual behaviour
birth-control pill, 98–9, 102
and class divide, 99, 102, 155–6
concept of sin, 156
and HIV, 121
and stigma, 156–8
sexual orientation, 3, 45
Sheffield, 7, 8, 126, 128–9, 131, 151, 168, 192
shell companies, 193, 194
Shiller, Robert, 34
Sidgwick, Henry, 55
Signalling, Theory of, 41, 43, 53, 63, 95
Silicon Valley, 37–8, 62, 145, 152, 164
Singapore, 22, 147
Slovenia, 58
Smith, Adam, 14, 21, 21–2†, 174
and mutual benefit from exchange, 28
and pursuit of self- interest, 26–7, 40
on reason, 29
The Theory of Moral Sentiments (1759), 27, 28, 174
Wealth of Nations (1776), 26, 28, 174
Smith, Vernon, 28
social democracy
‘Butskellism’, 49*
collapse of, 9, 11, 50, 51–6, 116–18, 201–2, 210
communitarian roots, 8–9, 11, 13, 14, 17, 48–9, 201
and group identities, 3–4, 13–14, 51–6
heyday of, 8–9, 15, 17, 47, 48–9, 68, 96, 196–7, 201, 210
and housing, 181–2
influence of Utilitarianism, 9, 10, 14, 16, 18, 49–50, 201, 203, 214
Libertarian challenge, 12–13, 14–15
New Right abandonment of, 14–15, 16, 26, 53
and Public Choice Theory, 15–16
replaced by social paternalism, 11–13, 49–50, 209–10
and rights ideology, 12–14
and secession movements, 58
shared identity harnessed by, 15, 196–7
unravelling of shared identity, 15, 50, 51–6, 57*, 58–61, 63, 215
and Utilitarianism, 214
social maternalism concept, 21, 154–5, 190
free pre-school education, 163–4
mentoring for children, 169–70, 208
support for stressed families, 20, 155, 157–60, 161–3, 208
social media, 27, 61, 87, 173, 207, 215
social paternalism
backlash against, 11–13, 15–16
as cavalier about globalization, 20
and child-rearing/family, 105, 110, 154–5, 157, 158, 159, 160, 190, 209
replaces social democracy, 11–13, 49–50, 209–10
‘rights of the child’ concept, 103–4
and Utilitarian vanguard, 9–10, 11–13, 15–16, 18, 66–7, 209
social services, 159
scrutiny role, 162
Solow, Robert, 141
Soros, George, 15*
South Africa, 85
South Asia, 192
South Korea, 129, 130–31
South Sudan, 192
Soviet Union, 114, 115, 116, 203
Spain, 58, 160