Page numbers for entries occurring in figures are followed by an f, those for entries in notes, by an n, and those for entries in tables, by a t.
Abelshauser, Werner, 160
Acao Integralista Brasileira, 151–52, 152n15
achievements, personal: in the good life, 284, 285; in modern experience of work, 59
adaptations, vs. innovations, 31–32
Adler, Mortimer, 296
adoption: in definition of innovation, 20; vs. development, 20, 20n1; end-users’ role in, 29, 29n6; population density and, 105–6; selection mechanisms in, 24, 26
Africa: capitalism in, 266; repression of competition in, 26
after-tax (net) wage, 227n6, 260–61
Agassiz, Louis, 48n8
Agenda 2010 (Germany), 161
aggregate demand, claimed deficiency of, 312
agriculture: migration to wage labor from subsistence, 50–51; output of farm workers in, 3–4, 3n3; wages for manual labor in, 46
airline industry, 245
airports, U.S., 83
Albelshauser, Werner, 149
alcoholism, in Soviet Union, 123
Alda, Alan, 281n15
Allen, Robert C., 45n3
altruism, 99n13, 208–9, 208n16
American Civil War, 53n15
Amherst College, 296
ancient world: concepts of the good life in, xi; innovation in, 1, 1n1. See also Babylonia; Greece; Finley, M. I.; Rome
animals: mental stimulation and, 61; reason and, 273, 273n3
Anne (queen of England), 253
anti-Semitism, German, 141n5, 147
antiseptics, 50
Antonioni, Michelangelo, 78n2
Argentina: agrarian economy of, 39, 39n16; corporatism in, 152; natural resources of, 79
Aristotle: on eudaimonia, 272, 273, 284, 288; on the good life, 271–75, 277, 284, 288; lack of innovation after, 1; Nicomachean Ethics, 271, 271n2, 284; Organon, 10
Arkwright, Richard, 12
Arnhem, battle of, 164n27
arts: copyright protection for, 253–54; in corporatism, 142; experience of modern life depicted in, 68–76. See also literature; music
Asia, corporatism in, 152. See also specific countries
assembly lines, 276n7
associations: employer, 145, 149, 150, 160; professional, 322, 323
attainments, in modern experience of work, 59–60
Austen, Jane, 65–66; Mansfield Park, 67; Sense and Sensibility, 66
Australia: corporatism in, measurement of, 181; economic performance of, recent, 171–73; hours spent on household chores in, 299
Austria: corporatism in, interwar, 151; corporatism in, measurement of, 180–82; corporatism in, performance of, 182–85; economic performance of, recent, 171–73, 182–85; infectious diseases in, decline of, 49; job satisfaction in, 207, 214; mercantile capitalism in, 5; in World War I, 144
Austrian Empire, 149
Austrian school of economics, 30, 121, 129–30
authoritarianism, loss of freedom under, 133
autocracy, vs. democracy, in formation of modern economies, 93–95
automobile industry, 32–33, 156, 160
Babbage, Charles, 27
Babylonia: credit institutions in, 91; private property in, 84
Bach, Johann Sebastian, 13, 286
Bacon, Francis, Novo Organum, 10
Balanchine, George, 75
Balla, Giacomo, 71
Balleisen, Edward J., 91n10
ballet, 75
Balzac, Honoré de, 67
bank(s): concentration of industry, 256; government debt held by, 251–52; government relationship with, 251–52; Italian, bailouts of, 144; local and regional, decline of, 303–4; merchant, 91–92, 322; origins and rise of, 91–92; as partnerships vs. corporations, 244; reform of, for recovery of dynamism, 321–22; structural faults of, as source of post-1960s economic decline, 244–46; U.S. reform of, 154, 245, 321–22
bankruptcy, origins of, 91
Bankruptcy Acts (U.S.), 91
Baring family, 91
Baroque music, 72
Barre, Raymond, 157
Barres, Maurice, 151
Barzun, Jacques: From Dawn to Decadence, 98, 217; humanities courses taught by, 296; on James (William), 281n14; on modern era, 98, 203; on organic generation of innovation, 318; on vitalism, 99n13, 279
Becker, Gary, 208n16
Belgian Revolution, 96
Belgium: corporatism in, measurement of, 179–82; corporatism in, performance of, 182–86; democracy in, development of, 95–96; economic knowledge in, 11; economic performance of, recent, 174, 182–86; mercantile capitalism in, 5; output per worker in, 5, 6; population growth in, 107–8; real wages per worker in, 44; urbanization in, 108
Benedict, Ruth, 194
Bentolila, Samuel, 201n6
Bergson, Henri, 318; Creative Evolution, 282, 282n17
Berle, Adolf, The Modern Corporation and Private Property, 243
Berlin (Germany), March Revolution in, 117
Berners-Lee, Tim, 27
Bernstein, Leonard, 276
Bertola, Giuseppe, 201n6
Beveridge, William, 132n15
Bhidé, Amar, 29n6, 244; The Venturesome Economy, 319
Bill of Rights (1689, England), 86, 287
Birth of the Modern (Johnson), 98
Bismarck, Otto von, 149, 157, 170
black activism, in 1960s, 291
Blanchflower, David, 196, 231, 231n10
Bloom, Harold, 99n13, 279; Shakespeare: The Invention of the Human, 280
Blowup (film), 78n2
blue collar workers. See working class
Boeing, 323
Boer War, 53n15
Bojilov, Raicho, 212
Bolshevik revolution, 134
booms: construction, 234, 261; dot.com, 201, 226; housing, 226, 245, 252–53, 310, 312; internet, 219, 261, 303, 311, 315; in mercantile capitalism, 115
borrowing, short-term, by banks, 244–45, 322
bourgeoisie: in mercantile economies, 97; in modern economies, 97, 114
Bourguignon, Philippe, 209, 210
Bradley, Harold, 32
Bradley, Owen, 32
Bradshaw, David J., 66
Brazil, corporatism in, 151–52
bribery, in corporatism, 178
Britain: art depicting modern life in, 69–70; bankruptcy in, 91; commerce in, rise of, 96–97; common law in, 84, 85, 87n8; competition in, 195; corporatism in, interwar, 152, 155–56; corporatism in, measurement of, 179, 179–82; corporatism in, postwar, 163–64, 165; democracy in, development of, 95; economic culture of, 195; economic knowledge in, sources of, 11, 12; economic performance of, interwar, 155, 156; economic performance of, recent, 171–76; financial panics in, 115; formation of modern economy in, 79, 84, 95, 102; infectious diseases in, decline of, 49; intellectual property rights in, 85; inventions of First Industrial Revolution in, 12, 13, 14; job satisfaction in, 199, 233; joint-stock companies of, 89–90; literature on modern life in, 63–67; mercantile capitalism in, 2, 5, 115; output per worker in, 5–6, 7n9, 43; population growth in, 107–8; post-1960s economic decline in, 222, 233; poverty in, decline of, 48; productivity growth in, 19th-century, 5–8; property rights in, 85; public opinion in establishment of capitalism in, 113; real wages per worker in, 5, 6, 6n8, 44, 45, 46–47; rule of law in, 86–87; socialism in, 120, 132n15, 163; unemployment in, 50, 51, 222; urbanization in, 61, 108; wage-productivity ratio in, 44, 47; wars of, 53n15; working class wages in, 46–48. See also England; Ireland; Scotland
British Parliament. See Parliament, British
Brontë, Charlotte, Jane Eyre, 66
Brontë, Emily, Wuthering Heights, 64, 64n6
bubbles, in mercantile capitalism, 115. See also booms
Buddenbrooks (Mann), 67
Buffett, Warren, 287
Burckhardt, Jacob, 111
bureaucratic red tape, as measure of corporatism, 162, 162n26, 164, 180
Bush, George W.: compassionate conservatism of, 311, 317; expansion of Medicare under, 259–60; policy response to stagnation, 313; tax cuts of, 226, 247, 263, 311, 312, 318
business knowledge: growth in, 34; in recovery of dynamism, 318–19
business sector. See companies; corporations
Butler, Nicholas Murray, 296
Byron, Lord, 63n5
Calmfors, Lars, 202n8
Calvinism, and economic culture, 78
Cameron, David, 205
Canada: corporatism in, measurement of, 179–82, 180n6; economic performance of, recent, 171–74, 182–86; job satisfaction in, 198, 201, 214; modernization of economy of, 41–42
Candide (Voltaire), 101–2, 275–76
Cantillon, Richard, 106
capital: definition of, 7; of entrepreneurs, 25; vs. labor, in innovative activity, 23–24; 19th-century growth of, 7–8; physical, in value of companies, 187; population growth in returns on, 108n23; socialist approach to allocation of, 120
capital access index, and job satisfaction, 204
capital goods, vs. consumer goods, in post-1960s economic decline, 224, 224n4, 225n5, 228n7
capitalism: antipathy for, 301; competition in, repression of, 26; corporatism’s critique of, 150; definition of, 41n1; introduction of innovation into, 26; mercantile (See mercantile capitalism); modern (See modern capitalism); mutual gain from exchange of services in, 289–90; origins of, 2, 108; scholarship on rise of, 77–78, 108–9; socialism’s critique of, 117–20; use of term, 41n1, 266. See also specific countries
Capitalism, Socialism and Democracy (Schumpeter), 10, 10n12, 27n4, 207
careers. See employment; job(s); work
caregiving, fulfillment through, 298
cartels, in corporatism, 143, 148, 151
Casanova, Giacomo, 286
Cassel, Gustav, 9n11
Casson, Mark, 28
Catherine the Great, 297
Catholic Church, on corporatism, 139, 151
Cavalleria Rusticana (Mascagni), 137
CBI. See Confederation of British Industry
Cellini, Benvenuto, Autobiography, 100, 279–80
Celsus, Publius Iuventius, 289
Census Bureau, U.S., 229, 234n13
centralization, in socialism, 119–20
Cervantes, Miguel, Don Quixote, 63, 100, 280
Cézanne, Paul, 71
challenges, in the good life, 280–82, 283–84
Chandler, Alfred, The Visible Hand, 241, 241n4
change, continual, in modern experience of work, 57
Chaplin, Charlie, 52
charitable foundations, 306
Charles Albert (king of Sardinia), 144n7
chartered joint-stock companies, 89
Chicago, jazz in, 75
child mortality, effects of modern economies on, 48–49, 48n9, 55
China: dynamism of, 22; economic culture of, 195; economic reformation of 1978 in, 195; education of leaders of, 319; manufacturing in, 52, 234–35; population density of, and rise of innovation, 105–6; productivity growth in, 43; recession of 2008–2009 in, 175; socialism in, 130; wealth accumulation in, 286, 287
choice, in the good life, 278
Christian socialism, 118
Christian Social Party, 141n5
Churchill, Winston, 147
cities: art depicting life in, 70–71; creativity in, 106–7, 107n21; diversity of, 106–7, 116; formation of, 106, 108; population density of, in formation of modern economies, 104–8. See also urbanization
Civilian Conservation Corps, 153
Civilization and Its Discontents (Freud), 139
Clark, Gregory, 3, 3n3, 4, 6n8, 46
classical economics: dominance of, 10; on economic knowledge, 9, 10; on freedom, 59
classic corporatism, 166
ClearType, 242
Coase, Ronald, 85n6
codetermination, 138, 141, 166
Coke, Edward, 87n7
Colbert, Jean-Baptiste, 162
collective bargaining, 202, 202n8, 207
colonialism, in mercantile capitalism, 2
Columbia College, 296
Columbia University, Center on Capitalism and Society at, 210–11
commercial banks, 92, 154, 245
commercial economies: culture of, 98; rise and spread of, 2, 96–97. See also mercantile capitalism; traditional economies
Common Core State Standards, 324
common law: development of, 84, 85, 87n8; vs. Roman law, 85, 202
Common Sense (Paine), 136
communism, vs. other types of socialism, 118, 120
Communist Manifesto, The (Marx and Engels), 41n1, 109, 117, 119
communitarianism, in cities, 116
companies: creation of ideas in, 30–31; culture of, 208; development of forms of, 88–90; joint-stock, 89–90, 105; measurement of value of, 187–88; right to ownership of, 83; short termism in management of, 243–44, 314, 320–21; structural faults of, as source of post-1960s economic decline, 241–46. See also corporations
Company, The (Mickelthwait and Wooldridge), 90n8
company law: in modern capitalism, 205–6; in recovery of dynamism, 321
compassionate conservatism, 311, 317
competition: in capitalism, 26; in corporatism, 24, 26, 142–43, 168, 180; in economic culture, 195; of ideas, 24; measurement of, 180; and postwar economic growth, 158–59, 159n23; in relationship between innovation and employment, 222; repression of, 26; ruinous, 245–46; in socialism, 24, 124–25
“Competition as a Discovery Procedure” (Hayek), 34n9, 37n14, 319
Conard, Nicholas, 1n1
concentration, of banking industry, 256
Condorcet, Nicolas de, 101
Confederation of British Industry (CBI), 164
Confederation of Industry (Italy), 145–46
Confindustria (Italy), 146
conformism, rise of, 250
Congress, U.S.: banking reform by, 154, 245; business knowledge in, lack of, 318–19; on copyright, 254; democracy in, 95; on mortgages, 252; reaction to post-1960s economic decline in, 226, 228–29
consensual corporatism, in Germany, 149–50
conservatism, compassionate, 311
constitution(s): German, 157; Italian, 156–57; lack of, in Europe, 144; in measurement of corporatism, 181–82; Polish-Lithuanian, 93; U.S., 87, 89
constitutional democracy, moral hazards in, 178
constitutional government, origins of, 86–87
consumer goods, vs. capital goods, in post-1960s economic decline, 224, 224n4, 225n5, 228n7
contracts: enforcement of, 81; limitations of, 206; social, 140, 166, 166n29, 291; U.S. Constitution on, 87, 89
Coolidge, Calvin, 136
Cooper, John, 284
copyrights: origins of, 85, 253; problems caused by, 253–54
corporations: concentration of sector in large, 256; culture of, 208; governance of, flaws in, 243; origins and development of, 89–90, 105; vs. partnerships, banks as, 244; short termism in, 243–44, 314, 320–21; structural faults of, as source of post-1960s economic decline, 241–46; U.S. Supreme Court on rights of, 89, 266
corporatism, 135–69; agenda of, 141–43, 166; classic, 166; competition in, 24, 26, 142–43, 168, 180; critique of modern economy in, 135–43, 150; current status of, 314; dark side of, 168–69; definition of, 26, 143n6; economic justice in, 186, 301, 302, 306–7; future of, 308–9, 320; the good life in, 269, 270; innovation in, lack of, 167–68, 186–92, 314; job satisfaction in (See job satisfaction); measurement of, approaches to, 159, 179–82, 180n6; modern elements in, suppression of, 306–7; moral hazards of, 178–79; new version of, 166–68, 265–66; origins of, 137–41; in post-1960s economic decline, 251–58, 265–66; postwar evolution of, 150, 157–65; as third way, 150; between world wars, 143–57. See also specific countries
corporatism, performance of: assumptions in scholarship on, 201–3; claims vs. evidence on, 178–86, 268–69; interwar, 155–57; in new version, 265–66
corporazioni (ancient guilds), 145–46
corruption, as sign of corporatism, 181
Cort, Henry, 12
Cortés, Hernán, 280
Cotis, Jean-Philippe, 180n6
Counter-Revolution of Science, The (Hayek), 34n10
courage, in creation of ideas, 28
Craft, Robert, 30
crashes, in mercantile capitalism, 115
Creative Evolution (Bergson), 282, 282n17
creativity: in cities, 106–7, 107n21; drivers of, 26–36; in dynamism, 28, 35; in the good life, 282–83; imagination in, recognition of role of, 101
credit institutions, origins of, 91
Crimean War, 53n15
crises. See financial crises
critical mass, populations at, 108
Cubism, 71
culturalism, in corporatism, 142
culture(s): company, 208; in economics, lack of consideration of, 194–95; vs. institutions, 195n1; political, 194; significance of international differences among, 194
culture, economic, 96–104; definition of, 96, 194, 207–8; in economic performance, 103–4, 210–11; in formation of modern economies, 96–104, 109; international differences in, 103–4, 209–11; in job satisfaction, 194, 207–15, 213f, 214f; of mercantile capitalism, 97; modern values in, 98–104; in post-1960s economic decline, 246–50; Protestantism and, 78; in recovery of dynamism, 323–24; of socialism, 120; traditional vs. modern, corporatism on, 137–39. See also values; specific countries
curiosity, in creation of ideas, 28, 29
currency speculation, 144, 244
Dartmouth College, 89
Darwin, Charles, 38
Daumier, Honoré, 45
Dawn of Innovation, The (Morris), 319
Debtors Act of 1869 (Britain), 91
debtors’ prisons, 91
Declaration of Independence, U.S., 93, 136
Decline and Fall of the Roman Empire (Gibbon), 79n3
Decline of the West, The (Spengler), 79n3
Decree of July 1926 (Italy), 146
deficits. See government deficits
Defoe, Daniel: Moll Flanders, 63; on need for copyrights, 253; Robinson Crusoe, 37, 39, 63, 279n13
democracy: and corporatism, coexistence of, 157; European, development of, 95–96; in formation of modern economies, 93–96, 105, 109; grassroots, 309; modern values in origins of, x; moral hazards in, 178; scholarship on rise of, 77; U.S., development of, 94–95
Democracy in America (Tocqueville), 79n3
Democratic Party (U.S.): on social welfare, 260; traditional values in, 260, 317
Denmark: corporatism in, measurement of, 180–82; corporatism in, performance of, 182–84; economic performance of, recent, 171–73, 176, 182–84; job satisfaction in, 198, 199, 213–14; mercantile capitalism in, 5
depressions, economic: of 1893–1898, 116; in Germany, 148; modern history of, 116. See also Great Depression
desires, hierarchy of, 275
determinism: creativity and, 282; historical, 9, 10, 37
Dewey, John, 58n3, 246–47, 276, 276n7
Diamond, Jared, 77, 79; Guns, Germs and Steel, 78n1
Dickens, Charles: David Copperfield, 65–66; on debtors’ prisons, 91; Hard Times, 64–65; on modern experience of work, 64–66, 66n10; Oliver Twist, 45, 64; Sketches by Boz, 65, 65n9; Speeches, Letters and Sayings, 65n9; The Uncommercial Traveller, 65n9
diet, effects of modern economies on, 49, 49n13
difference, making a, 285
directedness, in corporatism, 138, 166
discoveries, in modern experience of work, 59, 62
Discovery, Age of, 100
discovery procedure, 34, 34n9. See also Hayek, Friedrich
disease: effects of modern economies on, 48–50; population density in spread of, 106
distributive justice, 291–95, 299–300, 305–6. See also Rawls, John
diversity: of cities, 106–7, 116; in dynamism, 38; of human nature, 297–98; and wage inequality, 186
division of labor, in innovation, 23
Doctors without Borders, 286
Doctrine of Fascism, The (Mussolini), 145
Dolfuss, Engelbert, 151
D1/D5 ratio, 186n12
Don Quixote (Cervantes), 63, 100, 280
Dornbusch, Rudi, 174
Douthat, Ross, 238
Draghi, Mario, 174
due process, development of, 86–87, 87n8
Dupont, 241n4
Durkeim, Émile, 147
Duyckinck, Evert, 68n12
dynamism, 19–40; definition of, ix, 20, 194; in definition of modern economies, ix, 19; diversity in, role of, 38; drivers of creation of ideas in, 26–36; economic culture in, 194, 323–24; economic freedoms in, x, 29, 308; emergence of first economies with, 14–15, 307; growth in relation to, 19–22; human resources needed for, 28, 29, 31, 35; measurement of, approaches to, 21–22; pecuniary and nonpecuniary motives in, 25, 25n3, 29; recognition of role of, in modern capitalism, 317; recovery of, approaches to, 316–24; recovery of, prospects for, 308–9, 316–17; rise of (See modern economies, formation of); selection mechanisms for ideas in, 24–26; social system in, 36–40; understanding of mechanisms of, need for, 317–19
Earned Income Tax Credit (EITC), 177n3, 206, 228–29
East India Company, 89
eBay, 205
economic growth: in corporatism, 144–45, 158–59, 161, 178; dynamism in relation to, 19–22; in financial crises, origins of, 311; first economies with sustained, 6–15; postwar comparison of, 158–59, 159n23, 161. See also performance
“Economic Possibilities for Our Grandchildren” (Keynes), 274
Economic Reform of 1948 (Germany), 158
economics, Keynes on study of, 319
“Economics and Knowledge” (Hayek), 31n7
economies. See specific countries and types of economies
economies of scale, in 19th-century productivity growth, 7–8
Economy and Society (Weber), 78n2
Edison, Thomas, 33
education: in economic justice, 295–96, 296n4; government role in, 255, 295, 296n4; humanities courses in, 296–97; of legislators and regulators, 318–19; modern values in, 324; in socialist economies, 177
efficiency: economic freedoms and, 81; in economic justice, 291, 300; government role in, 316; in socialism, 121, 123, 129–30, 132–33
Einaudi, Luigi, 157
Einstein, Albert, 113
Eisenhower, Dwight, 251
EITC. See Earned Income Tax Credit
Eliot, Charles, 296
Elmeskov, Jørgen, 201n6
employee engagement, 58, 62, 304
employers’ associations: in German corporatism, 149, 150, 160; in Italian corporatism, 145
employment protection, in corporatism, 180, 190–91, 190f, 191f, 201
employment protection legislation (EPL), 180, 191, 201, 201n6
employment rates: in corporatist economies, 188–91; entitlements’ impact on, 260–63; growth as synonym for high, 222; innovation rate and, 188–91, 222–23; market-cap-to-output ratio as predictor of, 188–89, 189f; of men, decline in, 310; productivity growth rate and, 190n14. See also job(s); unemployment
enclosure movement, 108
end-users: adoption of innovation by, 29, 29n6; diversity among, 38; uncertainty about, 37
energy production, capital in, 24
engagement: employee, 58, 62, 304; in the good life, 284; political, 309
Engels, Friedrich, 117n2; The Communist Manifesto, 41n1, 109, 117, 119
England: Bill of Rights in, 86, 287; copyrights in, 253; economic knowledge in, 3–5; mercantile capitalism in, 2, 3–5; poverty in, decline of, 48
Enlightenment: definition of, 10; the good life in, 280, 287; headline inventions of, 12; origins of modernism in, 100–101; scientific advances in, 10–11
Enquiry Concerning Human Understanding, An (Hume), 28n5, 101
entitlement, culture of, 249
entitlements: employment affected by, 260–63; expansion of, 229–30, 258–60
entrepreneur(s): angel investors and, 35–36; definition of, 25; diversity among, 38; early recognition of value of, 100–101, 276; economic freedoms needed by, 29, 82; initiative taking by, 58–59, 98, 98n12; vs. innovators, 28; pecuniary vs. nonpecuniary returns for, 25, 25n3; pre-modern vs. modern, 28; scientific advances used by, ix, 9–10, 28; in selection process for ideas, 25; social, 25, 286; uncertainty of, 37
“entrepreneurial spirit,” coining of term, 78n2
EPL. See employment protection legislation
equilibrium: in market economies, 9; punctuated, 22–23
equity, and wages in free market, 290. See also justice
Erhard, Ludwig, Prosperity through Competition, 158
Erskine, John, 296
Espejo, Eugenio, 11
Essais (Montaigne), 100
ethics: Aristotelian, 286–88; modern, 211; vs. morality, 208; socialist, 118–20, 123; work, 123. See also values
ethnic diversity, and wage inequality, 186
ethnicity, in corporatism, 141n5
eudaimonia, 272, 273, 284, 288
Eurasia, specialization of labor in, 77
Europe: constitutions in, lack of, 144; debate over alternatives to capitalism in, 110; democracy in, development of, 95–96; distribution of modern economies in, 77–78; economic culture of, vs. U.S., 209; financial crises in, origins of, 310–11; financial panics in, 115; job satisfaction in, 232–33; music depicting modern life in, 72–74; political engagement in, 309; post-1960s economic decline in, 221–22, 232–33, 314; recovery of dynamism in, approaches to, 316–24; recovery of dynamism in, prospects for, 308–9, 317; revolutions of 1848 in, 116, 117; social welfare in, 258–59. See also specific countries
European Economic Commission, 158
European Union, establishment of, 158
Evans, Harold: “Eureka,” 32–33; They Made America, 33, 319
Evans, Oliver, 33
evolution, theory of, 38
evolutionary socialism, 118
factories: Dickens on, 64, 65; rise of, 51–52. See also manufacturing
“factory councils” movement, 146
failures, social value of, 38
Farm Credit System, 322
farm workers, output of, 3–4, 3n3
Fascist Manifesto of 1919, 144
Fascist Party (Italy), 144, 146
February Revolution (1848), 117
Federal Register of Regulations, 164
Federal Reserve, U.S., 175
Ferguson, Adam, Essay on the History of Civil Society, 2n2
Ferraro, Geraldine, 317
feudal system: decline of, 80, 108; wealth accumulation in, 104
Feynman, Richard, 113
Field Notes from Elsewhere (Taylor), 71
financial crises: of 2007–2008, 185, 186, 311–12, 322; origins of, 310–11
financial institutions: in job satisfaction, 204–5; reform of, in recovery of dynamism, 321–22; rise of, 91–92. See also bank(s)
financial panics, 115
financiers: angel investors as, 35–36; pluralism of views among, 38
Finland: corporatism in, 180, 185; economic performance of, recent, 171–73, 176; job satisfaction in, 213–14
Finley, M. I., The Ancient Economy, 1
Fiscal Neutrality toward Economic Growth (Phelps), 263
Fitch, John, 12
Five-Year Plans, of France, 151
Fleming, Alexander, 33
Flexicurity, 198
Flourish (Seligman), 285
flourishing. See mass flourishing; personal flourishing
Fogel, Robert, 14
food production, labor vs. capital in, 23–24
Ford Motor Company, 156
foreign trade. See trade
Forster, E. M., 136
Foster, John, 256
Four Speeches on the Corporate State (Mussolini), 145, 145n8, 146
Four-Year Plans, of Italy and Germany, 151
framework conditions, 81. See also institutions, economic
France: art depicting modern life in, 69; corporatism in (See French corporatism); democracy in, development of, 95; dynamism of, loss of, 41; economic culture of, 209–10, 246; economic knowledge in, 11; economic performance of, recent, 171–76, 182–87, 192; emigration from, 185; entrepreneurs in, recognition of value of, 100–101, 276; February Revolution in, 117; intellectual property rights in, 85; job satisfaction in, 199, 201, 214, 233; joint-stock companies of, 90; labor force participation in, 51; labor unions in, 162–63, 322–23; literature on modern life in, 67; mercantile capitalism in, 5, 115; music depicting modern life in, 74–75; output per worker in, 5–6; population growth in, 107; post-1960s economic decline in, 222, 233; productivity growth in, 19th-century, 5–8; property rights in, 85; real wages per worker in, 5, 6, 44, 45; socialism in, 134, 151; social welfare in, 259; tax code of, 165; unemployment in, 222; unemployment insurance in, 50; urbanization in, 61, 108; wage-productivity ratio in, 44–45, 47; wars of, 53n15
Franco, Francisco, 151
Frankenstein (film), 64
freedom(s): in dynamism, x, 29, 308; in economic success, 308; in formation of modern economies, 81–85, 105; in the good life, 272, 273; international differences in, 104; in justice, 292; in modern experience of work, 59; in socialism, 133
free market, wages in, 290
French corporatism: measurement of, 179–82, 180n6; origins of, 151, 162; performance of, 182–87; postwar, 162–63
French Revolution of 1789–1799, 45, 85, 93, 95
French Revolution of 1830, 95
French Revolution of 1848, 95
Freud, Sigmund, 138, 138n3, 287; Civilization and Its Discontents, 139
Fromm, Erich, 194
frontier, U.S., economic role of, 102, 108n23
Fuggers, 91
future: in historicism, 9; unknowability of, 37–38
Futurist art, 71
Gainsborough, Thomas, 68
Galbraith, John Kenneth, 34, 129n12, 267
Gandhi, Mahatma, 292n2
Gates, Bill, 193, 242, 286, 290
Gaulle, Charles de, 151
GDP: government outlays as percentage of, 162, 162n25, 164, 179–80; per employee, international comparison of, 182–83, 183f; per hour worked, international comparison of, 183–84, 184f; state-owned enterprises in, 171, 177
gender: barriers based on, effects of modern economies on, 74; and housework, 299; and human fulfillment, 298; and job satisfaction, 231, 231n10; and wage inequality, 227. See also men; women
General Social Surveys, 62, 231, 232n11, 233
General Theory (Keynes), 37n14
Gentile, Giovanni, 145
Georgics (Virgil), 275
Géricault, Théodore, 69, 69n13
German corporatism: interwar, 141n5, 147–50, 155–57, 170; measurement of, 179–82, 180n6; origins of, 137; performance of, 182–87; postwar, 157–63, 162n25
German Historical School of Economics, 9–10, 9n11, 27
German Workers Party, 147. See also Nazi Germany
Germany: anti-Semitism in, 141n5, 147; art depicting modern life in, 70–71; constitution of, 157; corporatism in (See German corporatism); democracy in, development of, 96; dynamism of, loss of, 41; economic culture of, 209–10; economic growth in, postwar, 158–59, 161; economic knowledge in, 11; economic performance of, interwar, 155–57; economic performance of, recent, 171–76, 182–87, 192; job satisfaction in, 199, 201, 214, 233; joint-stock companies of, 90; literature on modern life in, 67; March Revolution in, 117; mercantile capitalism in, 5; music depicting modern life in, 72–74; Nazi (See Nazi Germany); output per worker in, 5–6; population growth in, 107; post-1960s economic decline in, 222, 233; productivity growth in, 19th-century, 5–8; real wages per worker in, 5, 6, 44, 45; socialism in, 118, 119n5, 134, 147; social welfare in, 258; unemployment in, 222; unification of (1871), 149; urbanization in, 60; wage-productivity ratio in, 45, 47; wars of, 53n15; women in labor force of, 195; World War I reparations by, 148
Gibbon, Edward, Decline and Fall of the Roman Empire, 79n3
Giersch, Herbert, 157
Giffen good, 47n7
Gilbert, W. S., 283
Gladstone, William Ewart, 46
Glass, Philip, 75
Glass-Steagall Banking Act of 1933 (U.S.), 154, 245
global economy: dynamism in rise of, 22; in “golden age” narratives, 238; internationalization of innovation in, 20; measurement of dynamism in, 21; money culture in, 247
Glorious Revolution of 1688, 86
Godwin, William, 63n5
Goethe, Johann Wolfgang von, 67
Gogh, Vincent van, 70
“golden age” narratives, 237–40
golden parachute payments, 321
gold standard, 175
Goldwyn, Samuel, 64n7
good, the, Aristotle on, 271, 272
good economy: Democrats’ conception of, 317; dynamism in restoration of, 317; the good life in proper definition of, 269–70, 288; as modern economy, 293, 309; Republicans’ conception of, 317
good life, the, 268–88; ancient concepts of, xi; Aristotle on, 271–75, 277, 284, 288; in corporatism, 269, 270; definition of, 271, 272; economic justice and, 293; humanism on, 270–73; in modern capitalism, 301; in modern economies, xi–xii, 307–8; pragmatists on, 274–79, 281, 283–84; in socialism, 270; universality of goal of, 296; vitalists on, 279–88; work-life balance and, 304
Gordon, Robert J., 220n1
Gotha Program, 119n5
government: constitutional, origins of, 86–87; expansion of powers of, 86; joint-stock companies chartered by, 89
government debt. See sovereign debt
government deficits: in financial crises, 311; lack of understanding of, 318; need for understanding of, 319; tax rates and, 226, 227n6, 311, 318
government institutions. See institutions
government outlays: and job satisfaction, 206–7, 207n15; as measure of corporatism, 161–62, 162n25, 163, 164, 179–80
government regulations: business knowledge underlying, lack of, 318–19; effects on innovation, 82–83; harm vs. benefits of, 82–83, 206; and job satisfaction, 206, 207; in new corporatism, 167; rise in number of, 253, 253n10
government (state) role: in efficiency, 316; in modernism, 136–37; in post-1960s economic decline, 251–64, 266–67; in recovery of dynamism, 316–24
grassroots democracy, 309
Great Books programs, 296
Great Depression: corporatism and, 150, 152, 153, 155; productivity growth in, 8, 222; recovery from, 235; Second, 175
Great Divergence, 11
Great Moderation, 116n1
Great Recession of 2008–2009, 235, 236
Great Transformation of 1820–1930, 264–65
Greece, ancient: infrequent innovation in, 1; rule of law in, 87
Greece, modern, bailout of, 252
gross domestic product. See GDP
Grosz, George, 71
growth, as synonym for high employment, 222. See also specific types
guild socialism, 118
Gutenberg, Johannes, 77
Hamburg (city-state), commercial economy of, 2
Hamlet (Shakespeare), 100, 280
Hammurabi, Code of, 84
happiness: Aristotle on, 284; in the good life, 277–78, 284; income in relation to, 52–53; literature on, 71–72; neoclassical economics on, 277–78; productivity growth and, 274n4; pursuit of, in U.S., 101, 280, 284
Hargreaves, James, 12
Harris Interactive, 231n9
Hart, Lorenz, 153n16
Haydn, Joseph, 72
Hayek, Friedrich, ix; on adaptations, 31; in Austrian school, 30, 121; counter-revolution of science, 34n10; “Dependence Effect,” 34n9, 129n12; on discovery procedure, 34, 34n9, 37n14, 319; “Economics and Knowledge,” 31n7; on efficiency, 316; on feasibility of socialism, 125–32, 133; on German corporatism, 149, 156n21; Individualism and Economic Order, 31n7; on laissez-faire, 132n15; Mises as teacher of, 121; on personal knowledge in innovation, 30–31, 31n7, 101; in recognition of indigenous innovation, 128, 129, 129n12; The Road to Serfdom, 129n12, 131–32, 132n15, 133, 149, 156n21; Schumpeter influenced by, 10n12; on social change, 310; on unknowns in innovation, 34; use of knowledge in society, 31n7
healthcare industry: government role in, 255, 258; improvements in, with rise of modern economies, 50; in U.S. vs. Europe, 258
Hecht, Ben, 64n7
Heckman, James, 295
Henley, William Ernest, Invictus, 280
Henry V (Shakespeare), 278
Hewlett, Sylvia Ann, 299
Hicks, John, 7n10
Hitchcock, Alfred, 78n2, 224n4, 248
Hitler, Adolf, corporatism under, 147, 148, 155, 155n18, 156, 156n21, 170
Hobbes, Thomas, 37
Hockney, David, vii
holding companies, 88
Holland. See Netherlands
Hollande, François, 322
Holocaust, 141n5
home: balance between work and, 304; in the good life, 304; management of, 298, 299; working from, innovation impeded by, 39, 250, 304
home mortgages, government role in, 252–53, 311
Homer: Iliad, 279; Odyssey, 279
Hoon, Hian Teck, 222
Hopper, Edward, 248
hospital practice, improvements in, with rise of modern economies, 50
housing, in recession of 2008–2009, 236, 311
housing boom, 226, 245, 252–53, 310, 312
Howard, Philip K., 165
“How Medical Know-How Progresses” (Nelson), 319
Hubble, Edwin, 248
Hudson’s Bay Company, 89
Hugo, Victor, Les Misérables, 45
humanism: in economic culture of modern economies, 98; on the good life, 270–73; vs. socialism, 132, 133
humanities, in core curriculum, 296–97
human nature: economic justice and, 296–300; as universal vs. diverse, 297–98
Hume, David: An Enquiry Concerning Human Understanding, 28n5, 101; on the good life, 280; on imagination, 28, 28n5; on mercantile capitalism, 97; Treatise on Human Nature, 97
“hundred years’ peace,” 53n15
Hungary: job satisfaction vs. security in, 233; market socialism in, 125
Hutchens, Robert, 296
hygiene, effects of modern economies on, 49
Ibsen, Henrik, 282
Iceland: corporatism in, measurement of, 181; job satisfaction in, 214; population density of, 105; vitalism in, 286
ICT. See information and communications technologies
ideas: competition of, 24; drivers of creation of, 26–36; failed, value of, 38; in modern economies, 23–27; population density in spread of, 106; science as source of, 26–27; selection mechanisms for, 24–26; society’s role in, 36–40
ideas sector, 23
imaginarium, modern economy as, 27–28
imagination: in creativity, recognition of role of, 101; in dynamism, 28, 29, 32; in the good life, 280
IMF. See International Monetary Fund
imitation, vs. innovation, 20; in corporatist economies, 187; in global economy, 20, 21
immigration: economic performance and, 185–86; job satisfaction and, 201
importance of job, in job satisfaction, 199–201, 200t
incentives: in joint-stock companies, 90; short-term, at corporations, 243–44, 314, 320–21; in socialism, 122–26, 123n7
inclusion, economic: definition of, 173, 227; international decline of, 176; in modern capitalism, 307; in nineteenth-century London, 64n6; in post-1960s economic decline, 227–30; as social benefit of wage growth, 47; in socialism, 173, 176; subsidies for, 240, 292
income: control of, in corporatism, 159; extraordinary, 293; vs. flourishing, vii; and the good life, 271–72, 273–74; growth of, in expansion of social welfare, 260; happiness in relation to, 52–53; justice in distribution of, 291–95, 299–300, 305–6. See also wage(s)
income inequality. See wage inequality
income tax. See tax(es)
Index of Social Infrastructure, 181n8
India, employment subsidies in, 292n2
indigenous innovation: capacity for (See dynamism); in corporatism, evidence on lack of, 187–92; definition of, ix, 9; emergence of economies based on, 14–15; Hayek’s role in recognition of, 128, 129, 129n12; as source of economic knowledge, 14–15
individualism: in corporatism, 147, 151, 166, 168; in modernism, 99–100, 135–36; origins and development of, 99–100; in socialism, 132–33
Individualism and Economic Order (Hayek), 31n7
industrialization: Dickens’s views on, 65; as stage of modernization, 108–9
Industrial Revolution, First: dates of, 12, 13n13; headline inventions of, 12–14
Industrial Revolution, Second, 13n13
infectious diseases, effects of modern economies on, 48–50
informal sector, in socialist economies, 174
information and communications technologies (ICT), 180n6, 225n5, 228, 228n7
Inglehardt, Ronald, 285
initiative, taking, in modern vs. traditional economies, 58–59, 98, 98n12
innovation(s): vs. adaptation, 31–32; in ancient world, 1, 1n1; current status of, 313–16; definition of, vii, 1, 20, 20n1; development vs. adoption of, 20, 20n1; division of labor in, 23; employment in relation to, 188–91, 222–23; end-users’ role in, 29, 29n6; indigenous (See indigenous innovation); international differences in distribution of, 77–78, 105; vs. invention, 20n1; mass, in modern economies, 53–54, 308; need for, to reverse stagnation, 313; in post-1960s economic decline, 225, 228, 263–64; public recognition of role of, vii–viii; during recessions, 235, 235n14; regulations’ effects on, 82–83; Schumpeter’s account of, ix, xi, 10, 10n12; vs. scientific discoveries, 11, 12–13; scientific discoveries as cause of, ix, xi, 9–12, 26–27; selection mechanisms for, 24–26; short termism and, 314; in socialist economies, lack of, 127–29, 130; as source of economic knowledge, 12–14; stages in process of, 23; understanding of mechanisms of, need for, 317–19; use of term, 20n1; variations in volume of, 20–21
innovation system, national economy as, 20
input. See productivity
insiders, in corporatism, 178–79
insight, in dynamism, 28, 29, 32
institutions: vs. culture, 195n1; financial (See financial institutions); German Historical School on role of, 9n11; political, 93–96, 142–43; in rise of innovation, vii, 79–80
institutions, economic: of capitalism, 204–7; in economic performance, 104; financial institutions as, 91–92; in formation of modern economies, 81–92, 314; freedoms as, 81–85; international differences in, 104; in job satisfaction, 201–7; private property as, 83–86, 204; in representative democracies, 93–94; of socialism, 120
insurance: social, 206–7, 258; unemployment, 50, 201–2
intellectual property rights: in formation of modern economies, 85–86; origins of protections for, 85–86, 253; problems caused by, 253–54
interactivity: in dynamism, 38–39; in modern experience of work, 58, 60–61
interchange, in modern experience of work, 58, 60–61
interest rates, expansion of entitlements and, 261
international differences: in economic culture, 103–4, 209–11; in economic knowledge, 11–12; in innovation, rise of, 77–78, 105; in job satisfaction (See job satisfaction); in modern values, 103–4, 285–86
International Monetary Fund (IMF), 303
International Social Survey Programme, 199
international trade. See trade
internet boom, 219, 261, 303, 311, 315
internships, for regulators and legislators, 318
inventions: accidental innovations, 33; characteristics of inventors, 12–13; headline, of First Industrial Revolution, 12–14; vs. innovation, 20n1; as source of scientific knowledge, 12–13
investment banks: and commercial banks, separation of, 154, 245; origins of, 92; as partnerships, 88; structural faults of, as source of post-1960s economic decline, 244–46
Ireland: corporatism in, interwar, 151; corporatism in, measurement of, 180–82; corporatism in, performance of, 182–86; economic performance of, recent, 182–86; job satisfaction in, 196, 198, 201, 214; pauperism in, 48
Irving, Washington: “The Legend of Sleepy Hollow,” 68; The Sketch Book of Geoffrey Crayon, Gent., 68
isolation, innovation impeded by, 39
Israel, modernization of economy of, 42
Italian corporatism: interwar, 141–42, 143–47, 155–56; measurement of, 179–82, 180n6; performance of, 182–87; postwar, 160–63
Italy: art depicting modern life in, 71; authoritarianism in, 133; bribery in, 178; capitalism in, rejection of, 144–45; constitution of, 156–57; corporatism in (See Italian corporatism); dynamism in, 21; economic knowledge in, 12; economic performance of, interwar, 155–56; economic performance of, recent, 171–77, 182–87, 192; job satisfaction in, 199, 201, 214, 233; mercantile capitalism in, 5, 144; music depicting modern life in, 74; 19th-century productivity in, 8, 21; post-1960s economic decline in, 233; scientism in, 142; socialism in, 134, 144; in World War I, 144
James, William, 58n3, 280–81, 281n14, 282
James I (king of England), 253
Jane Eyre (Charlotte Brontë), 66
Janicek, Joseph, 77
Japan: corporatism in, 152, 181; dynamism of, 22
Jefferson, Thomas, 101, 136, 248, 280, 284
Jellicoe, Samuel, 12
Jews: anti-Semitism against, 141n5, 147; corporatism on, 141n5
Jhunjhunwala, Bharat, 292n2
job(s): access to, socialism on, 118; employee engagement in, 58, 62, 304; importance of, in job satisfaction, 199–201, 200t. See also employment rates; unemployment
job creation, decline in, 234, 256, 257f
job destruction, decline of, 234, 256, 257f
jobless recovery: of 2010–2011, 222; definition of, 234
job satisfaction, 193–215; cultural cause of differences in, 194, 207–15, 213f, 214f; institutional cause of differences in, 201–7; international differences in, 195–201, 196f, 197f, 198f, 200t; vs. job security, 233; in post-1960s economic decline, 230–33, 231n9, 232f; in socialist economies, 120; value of measuring, 196–97; among working class, 62. See also work, experience of; specific countries
job security: and discontent with modern economies, 115–16, 116n1; in post-1960s economic decline, 233–34, 234n12; in socialist economies, 174–75
John (king of England), 86
Johnson, Paul, 1, 12–13; Birth of the Modern, 98
Johnson, Samuel, 107
joint-stock companies, origins of, 89–90, 105. See also corporations
Joint Stock Companies Act of 1844 (Britain), 89
Joint Stock Companies Act of 1856 (Britain), 89–90
Jonna, Jamil, 256
Judah, Anna, 33
Judah, Theodore, 33
judgment, in creation of ideas, 28
justice, economic, xii, 289–309; distributive, 291–95, 299–300, 305–6; flawed conception of in corporatism, 186, 301, 302, 306–7; in good economy, 288; human nature and, 296–300; in modern capitalism, 293, 300–307; in modern economies, xii, 292–96; for nonparticipants in economy, 298–300, 305–6; political systems and, 309; Rawls on, 228, 290–96, 299–300; in socialism, 301, 302, 306–7; wage inequality in, 290, 291–92, 302
Kasparov, Garry, 310
Keats, John, 280
Kellaway, Lucy, 197n3
Kennedy, Maev, 50
Keynes, John Maynard, ix; on creation of ideas, 37, 37n14; “Economic Possibilities for Our Grandchildren,” 274; General Theory, 37n14; on Hayek, 132n15; on importance of ideas, 267; on Italian corporatism, 147; as Marshall’s student, 56n1; neoclassical welfarism of, xi; at Spiethoff’s retirement, 9n11; on study of economics, 319; A Treatise on Probability, 37n13; on uncertainty, 37, 318
kickbacks, 178
Kilby, Jack, 27
king, rights against the, 86–87
King, Larry, 33
King Lear (Shakespeare), 100
Kirchner, Ernst Ludwig, 71
Klein, Felix, 19
Kling, Arnold, 255
Knight, Frank, ix, 36–37; Risk, Uncertainty and Profit, 37n13
knowledge, business: growth in, 34; in recovery of dynamism, 318–19
knowledge, economic, 1–15; in ancient world, 1; definition of, 1; German Historical School on, 9–10; indigenous innovation as source of, 14–15; international differences in, 11–12; inventions as source of, 12–14; measurement of, approaches to, 3–4; in mercantile era, 2–5; 19th-century explosion of, 5–8; in productivity growth, 3, 8; in Renaissance, 1; scientific advances as source of, 9–12; in socialist economies, 125–27
knowledge, personal: in creation of ideas, 30–31, 31n7, 101; in the good life, 273–77, 284
knowledge economy, 31, 109, 128–29
Koestler, Arthur: The Act of Creation, 283; The Sleepwalkers, 283
Kokoschka, Oskar, 71
Kroc, Ray, 287
Krueger, Jonathan, 36n12
Krugman, Paul, Geography and Trade, 7n10
Kuczynski, Jürgen, 6, 6n8, 7; Labour Conditions in Western Europe, 6n8; A Short History of Labour Conditions, 6n8
Kuznets, Simon, 106n20