The Third Pillar

  conflict resolution, 9–10

  consensus politics, 153

  construction, 275

  Constitution, U.S., 71

  constitutional patriotism, 298

  constitutions, 285

  Consumer Price Index (CPI), 189

  copyhold tenancy, 36

  copyright laws, 204–6

  corporations, 173, 176, 194, 195, 206, 355–56, 373–74

  CEOs of, 193–94, 198–99, 209

  and change in attitudes toward profit and incomes, 195–201

  European, 209

  lobbying by, 378, 389

  monopolies by, see monopolies

  new business creation, 201–7, 380–81

  profit maximization and value maximization in, 374–79

  social responsibility of, 378–79

  corruption, 98–100, 109, 114, 138

  in China, 261, 265

  in India, 272

  Cowen, Tyler, 161

  Crecy, battle of, 42

  crime, 343–44

  Cristo Rey Catholic School, xxiv

  Cromwell, Oliver, 66

  cronyism, 99, 106, 108–9, 113–15, 139, 176, 244, 274, 184, 352, 392

  in China, 257–58

  in India, 268, 269

  data, as market power, 384–86

  David, Paul, 161

  debt contract, 29–31

  see also loans

  de la Croix, David, 20

  democracy(ies), xxvii, 79, 91, 97, 98, 118, 143, 160, 172, 218, 244, 319, 352, 357, 371, 380, 396

  crony, 113–15

  illiberal, 113

  in India, 268–70, 272–74

  markets and, 106, 110

  public hearings and, 389–90

  Democrats, 235–36, 240

  Deng Xiaoping, 249–52, 265, 278

  Depression, Great, see Great Depression

  Depression of 1893, 133, 134

  developing countries, 245

  Dewey, John, 124–25, 227

  Dickens, Charles, 129

  diversity, 128, 134, 148, 177, 284, 287, 289, 302, 357

  benefits of, 290–95

  costs of, 293–95

  see also immigration, immigrants

  divorce, 235

  Dodd–Frank Wall Street Reform and Consumer Protection Act, 204

  Doepke, Matthias, 20

  Douthat, Ross, 235

  Dream Hoarders (Reeves), 224

  drugs, drug companies, 183, 184, 204, 354, 362–63, 384

  East India Company, 68, 69

  Economist, 202

  Edison, Thomas, 117

  education and schools, xx, 6, 72, 83, 140, 158, 162, 221, 228–29, 283, 286, 290, 305, 308–9, 343

  colleges and universities, see colleges and universities

  community and, 119–25, 225–28, 232–34, 313–18

  credentials and, 233–34, 317, 393

  decentralization in, 316

  decline in school quality, 232–34

  in France, 125–27, 317

  GI Bill and, 156, 157

  new tools and methods in, 314–15

  paying for, 317–18

  segregation and, 229–30

  teachers, 102–3

  technological progress and, 122–23

  in U.S., 119–25, 127, 190–91, 233–34, 317

  worker capabilities and, 313–18

  Einstein, Albert, 384

  Einsweiler, Frank, 337, 339

  Elberfeld system, 129–31, 320

  Ellikson, Robert, 9–10

  emerging markets, 245, 271

  see also China; India

  Engels, Frederick, 88, 90

  Engerman, Stanley, 72, 96

  England, 52, 59–60, 64–65, 67, 73, 132–33

  agricultural laborer revolt in, 94–95

  Chartist movement in, 95

  Civil War in, 66, 70

  Declaration of Rights in, 67–68, 71

  emergence as constitutionally limited state, 52–74, 83

  Glorious Revolution in, 67–71

  Industrial Revolution in, see Industrial Revolution

  Parliament in, 57, 60–62, 65–70, 74, 77, 84, 105

  Poor Law in, 19, 84

  Stuarts in, 52, 58, 65–67, 73, 108

  Tudors in, 51–54, 73

  voting rights in, 92, 94–95

  William and Mary in, 67

  environment, 365, 371–72, 396

  climate change, xii, 245, 284, 365, 396–97

  Erhard, Ludwig, 154

  Essay on the Principles of Population, An (Malthus), 83

  ethnicity and race, xxi–xxii, 298, 397

  residential sorting and, 229–31

  see also African Americans; diversity; immigration, immigrants; minorities

  ethnic nationalism, 215–16

  populist, 216–17; see also populist nationalism

  Europe, 52, 59, 74, 160, 167–68, 236, 368, 370

  feudalism in, see feudalism, feudal communities

  immigration in, 144, 159, 167, 210, 241–43

  inequalities in, 177

  populist nationalism in, 241–43

  regulators in, 359

  safety nets in, 156

  after World War II, 148–54

  European Coal and Steel Community, 150

  European Economic Community (EEC), 150

  European Payment Services Directive, 385

  European Payments Union, 150

  European Union (EU), 168–73, 208–10, 310, 369, 370

  Brexit and, 242

  competition and, 208–9

  creation of, 168

  currency integration in, 169, 237

  immigration crisis and, 242

  loss of sovereignty in, 171–72

  poultry farms in, 355, 356

  Stability and Growth Pact in, 169, 170

  factories, 18, 78, 88–89, 104, 185

  fairness, 115–16

  Fallows, Deborah, 344

  Fallows, James, 344

  families, 231, 235

  familism, amoral, 14

  Farmers’ Alliance, 23

  fascism, xvii, 97, 138, 145, 153

  Fault Lines (Rajan), xxvi

  Federal Reserve, 104, 163, 366

  feudalism, feudal communities, xxvii, 19, 25, 35–36, 42, 51–52, 55, 64, 73, 74, 83, 84, 91, 92

  and Church’s attack on usury, 34–40

  commercial revolution and, 36–39

  technology and, 41–42

  financial crises:

  technological change and, 118, 119

  of 2007–2008, see Global Financial Crisis of 2007–2008

  in U.S., 87–88, 118

  Food and Drug Administration, 387

  Forastie, Jean, 153

  Forbes 400, 192

  Ford, Gerald, 235

  Ford, Henry, 179–80

  France, 59, 145, 168, 246, 298

  in European Union, 169, 170

  income in, 191, 192

  in postwar period, 150, 152–54

  Revolution in, 74, 94, 125–26

  schooling in, 125–27, 317

  free-rider problem, 17

  Friedman, Milton, 139–40, 164, 195–201, 375, 377

  Friedman, Rose, 139–40

  Furstenberg, Carl, 209

  G7 nations, 368

  Galena, Ill., 337–38, 339, 344

  gaming, 334

  Gandhi, Indira, 269, 271

  Gandhi, Mohandas K., 281, 298

  Gao, Xiaohui, 201

  Gaud, Malinil, 336, 339

  GDP, 163, 164

&
nbsp; General Agreement on Tariffs and Trade (GATT), 146, 150, 353

  gentry, 54–58, 64–66, 71, 72

  Gentzkow, Matt, 332–33

  Germany, 73, 74, 162, 236, 238, 241

  Elberfeld system of assistance in, 129–31, 320

  in European Union, 169–71

  income in, 191, 192

  migrants and foreign workers in, 159, 242

  Nazi, 112, 157, 380

  in postwar period, 150, 153, 154

  social insurance in, 132, 156

  state and industry linked in, 111–12

  Giersch, Herbert, 167

  Giving Pledge, 396

  Glaeser, Edward, 98, 137

  Glass-Steagall Act, 104

  Global Financial Crisis of 2007–2008, xiii, xxvi, xxviii, 88, 144, 199, 204, 213, 236–43, 353–54, 358, 370, 393

  China and, 258, 259

  global governance, 245–46, 367–70

  globalization, 371–72

  gold, 100, 101

  Goldin, Claudia, 98

  Goldstein, Amy, 186

  Google, 201, 203, 350, 386

  Gorbachev, Mikhail, 251

  Gordon, Robert, 161

  government, governance, xv, 107, 139, 394

  centralization of, 51

  deficits, 162–64, 324

  federal, xiii–xiv, xvi; see also state

  global, 245–46, 367–70

  local, xiv, xv, xvi, 11–12, 286, 305, 311–13; see also community

  promises made by, 145–73, 324–25

  promotion of views in, 107

  Grant, Ulysses S., 98, 337

  Great Britain, see England; United Kingdom

  Great Depression, xxvii, 88, 119, 134–38, 139, 145–47, 151, 157, 210, 237, 364

  safety nets in the U.S. before, 133–34

  Great Recession, xiii, 238, 334

  Great Society, 158

  Greece, 145, 170, 237, 238, 359

  Gregory VII, Pope, 38, 54

  guilds, 58–62, 64, 81

  gunpowder, 41–42

  Gutenberg, Johannes, 46

  Habermas, Jurgen, 298

  Hampton, Keith, 331

  handloom weavers, 18–19, 116, 188

  Hanson, Gordon, 185

  Harrington, James, 58

  Hart, Oliver, 11

  Harvard University, 98, 137, 197, 233, 242, 293, 362, 364, 371, 389

  Hayek, Friedrich, 91, 164

  health care, 156, 162–63, 318–19, 324

  Affordable Care Act (Obamacare), 144, 214, 239–41

  drugs, 183, 184, 204, 354, 362–63

  training and wages in, 388

  in U.K., 156

  in U.S., 158, 203

  Heckman, James, 6, 223, 225, 226

  Hendren, Nathaniel, xvi

  Henry VII, King, 53–54

  Henry VIII, King, 54, 57

  Hicks, John, 99

  Hillbilly Elegy (Vance), 300–301

  Hochschild, Arlie Russell, 239–40

  Holland, 65

  housing, 237, 307–9

  Hsieh, Chang-Tai, 220, 253, 258

  Huang, Yasheng, 251

  Hume, David, 63

  Hurst, Erik, 333–34

  Icahn, Carl, 197

  ICT, see Information and Communications Technology revolution

  Idea of India, The (Khilnani), 298

  Ignatieff, Michael, 299

  immigration, immigrants, xvi, xviii, 121, 134, 137, 147, 148, 159–60, 173, 218, 219, 245, 284, 286, 289, 297, 302, 348

  benefits of, 290–95

  distressed communities and, 342

  in Europe, 144, 159, 167, 210, 241–43

  Harvard study on, 242, 293

  Japan and, 292–93

  Muslim, 241, 242

  population aging and, 260, 284, 286, 292–93, 396

  residential sorting and, 229–31

  talent and, 290–91

  in U.S., 137, 159–60, 292

  inclusive civic nationalism, 297–99, 302

  inclusive localism, xxii, 22, 285–87, 289–302, 327, 351, 394

  income and wages, 90, 127, 152, 213, 388, 395, 396

  dispersion across US cities, 220

  of doctors, 388

  Earned Income Tax Credit and, 345–46

  economic segregation and, 307–9

  effects of technology and trade on, 188–94

  median wage, 189–91

  occupational licensing and, 207

  top one percent, 102, 191–94

  universal basic income, 322–23

  India, xxvi, xxviii, 19–20, 31, 113–15, 139, 144, 245, 246, 267–74, 287, 298, 317, 350, 391

  affirmative action in, 300–302

  bribery in, 312

  China compared with, 247–48, 267, 269, 270, 275–76

  corruption in, 272

  cronyism in, 268, 269

  decentralization in, 270, 272

  democracy in, 268–70, 272–74

  economic growth of villages in, 275

  Finance Ministry in, 274

  Indore, 335–37, 339, 344

  land acquisition for public projects in, 275–76

  liberalization in, 269–71, 273, 276

  populism in, 272, 276–78

  Rashtriya Swayamsevak Sangh in, xix, 277

  socialism in, 267–69, 391

  state, markets, and democracy in, 272–74

  individualism, 194–96, 201, 284

  Indore, 335–37, 339, 344

  industrialization, 75, 88, 127, 275

  Industrial Revolution(s), 16, 18, 26, 70, 74, 78, 84, 87, 91, 230

  First, 116–17

  Fourth, 117

  handloom weavers and, 18–19, 116, 188

  Second, 117–19, 122, 146, 147, 152, 153, 160–61

  Third, 117

  in U.S., 121

  see also Information and Communications Technology (ICT) revolution

  inflation, 56–57, 163, 164, 366

  Information and Communications Technology (ICT) revolution, xii–xiii, xxi, xxviii, 117, 148, 161, 162, 175–211, 213, 313, 321–22, 338, 340, 382, 393, 394

  automation in, xii, xviii, 3, 143–44, 175, 178, 185–87, 314

  communities and, xviii–xx, 176, 184–88

  decentralization and, 312–13

  interconnected world and, 350–51

  jobs and, 143–44, 173, 175, 177–88, 395

  trade and, 143–44, 173, 181–88

  inheritance, 37, 45, 105

  Inquiry into the Nature and Causes of the Wealth of Nations, An (Smith), 80

  intellectual property, 73, 183, 278, 351, 362–63, 382–84

  patents, 204–6, 362, 382–84

  International Monetary Fund (IMF), xxvi, 146, 151, 270, 367, 368–69

  international responsibilities, 363–67, 372, 397

  internet, 117, 310

  China and, 266, 350

  community and, 330–35

  political views and, 332–33

  Ireland, 237, 238, 353–54

  Italy, 145, 162, 303–4, 359

  in European Union, 169

  Montegrano, 12–14, 113, 227

  in postwar period, 149, 152

  Jackson, Andrew, 93

  James I, King, 66–67

  Jams II, King, 70

  Janesville, Wisc., 341

  Janesville (Goldstein), 186

  Japan, 157, 160, 302, 368, 380

  aging population in, 292–93

  currency in, 366

  immigration and, 292–93

  income in, 191

  in postwar period, 148, 153<
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  protectionism in, 354

  Jeffers, Jessica, 205

  Jefferson, Thomas, 58

  Jensen, Michael, 196

  Jiang Zemin, 251

  jobs, xii, xviii, 163, 164, 224, 343, 389, 395

  African Americans and, 230–31

  credentials and, 233–34, 317, 393

  ICT revolution and, 143–44, 173, 175, 177–88, 395

  and lump of labor fallacy, 180

  mercantilism and, 62–63

  occupational licensing and, 206–7, 387–88, 393

  Second Industrial Revolution and, 122

  see also income and wages; workers

  Johnson, Lyndon, 157–58, 229

  Juncker, Jean-Claude, 172

  Jungle, The (Sinclair), 104

  Justice, US Department of, 202

  Kahn, Alfred, 165

  Kalanick, Travis, 196

  Kaplan, Steve, 192

  Katz, Bruce, 303

  Kautilya, 31

  Keynes, John Maynard, 154, 163, 395

  Khan, Khizr, xxi

  Khilnani, Sunil, 298

  Khodorkovsky, Mikhail, 111

  Kim, Han, 220

  King, Martin Luther, Jr., 157, 158, 397

  Kleiner, Morris, 207

  knowledge, diffusion of, 204–6

  Krueger, Alan, 207

  Kyoto Protocol, 365

  laissez-faire, 77–78, 81, 83

  landowners, 37, 58, 72, 74

  gentry, 54–58, 64–66, 71, 72

  Lasch, Christopher, 227

  Latin America, 72, 93, 96

  Lee Kuan Yew, 247

  LEGO, 391

  lending, see loans

  Le Pen, Marine, 236

  Lerner, Josh, 362

  Levine, David, 382–83

  liberal democracy, 74–75

  liberalism, 83, 160

  liberalization, 206

  in China, 248–67, 276

  in India, 269–71, 273, 276

  private sector’s reaction to, 194–201, 207–8

  liberal market democracies, xiii, xx, xxvii

  libertarianism, 115

  limited-access societies, 97–98

  Lindsey, Brink, 205

  loans, 44–45, 48

  contract in, 29–31

  see also usury

  lobbying, 378, 389

  localism, xxi, xxviii, 285, 286, 303

  inclusive, xxii, 22, 285–87, 289–302, 327, 351, 394

  long-term benefits of, 303

  location, importance of, 219–21

  Long, Huey, 136

  looms, 18–19, 116, 188

  Louis XIV, King, 60, 65, 66

  Luce, Edward, 227

  Luther, Martin, 46

  Madison, James, 97, 218

  magnates, decline of, 53–54

  Mahajan, Vijay, 337

  Malthus, Thomas Robert, 83

  Mann, Horace, 121

  manufacturing, 152, 184–85, 206

  Mao Zedong, 247–50

  markets, xiii, xv, xvii–xviii, xx, xxii, xxvii–xxviii, 25–27, 50, 56, 77–106, 145, 154, 172, 173, 243–44, 283, 184, 285–87, 304, 393, 394