labor: vs. capital, in innovative activity, 23–24; division of, 23; specialization of, 77
Labor Charter of April 1927 (Italy), 146
labor force: mercantile-era growth of, 3; migration from subsistence farming to wage labor, 50–51; 19th-century growth of, 7–8
labor force participation: in corporatism, 184–85; effect of wealth on, 260–61, 262f; increase in, with rise of modern economies, 51; in socialism, 173–74; by women, 195
labor productivity. See output per worker
labor unions, in corporatist economies: bargaining by, 202, 202n8; Catholic Church on, 139; interwar, 145–46, 148, 149, 150, 152, 154, 160; performance affected by, 202, 202n8; postwar, 160, 162–64, 165; rise in power of, 143, 160, 163, 165
labor unions, reform of, for recovery of dynamism, 322–23
laissez-faire, 132n15, 144, 158
Lamartine, Alphonse de, 73
land: in mercantile era, 4–5, 4n4; virgin, economic role of, 102, 108n23
Laplace, Pierre Simon, 11
large numbers, law of, 94
La Scala opera house (Milan), 142
Lattis, Richard, 61
law: common, 84, 85, 87n8, 202; company, 205–6, 321; Jewish, 84, 87; Roman, 84–85, 137, 202; rule of, 86–87, 94. See also specific laws
lawsuits. See litigation
Lazear, Edward, 201n6
leadership: in corporatism, 138; in modern economies, lack of, 138
league tables, 21
Lectures on Jurisprudence (Smith), 2n2, 97
legislators, education of, 318–19
Leigh, Michael, 283
Leo XIII (pope), 139, 147, 151
leprosy, 49
Leroux, Pierre, 117n2
Lévi-Strauss, Claude, 194
liability: of corporations, 89–90; of partnerships, 88
liberalism, Italian response to, 144
life: the good (See good life, the); modern (See modern life)
life satisfaction: in the good life, 285; job satisfaction and, 196–98, 198f, 198n4
limited liability, origins of, 89–90
Liszt, Franz, Les preludes, 73–74
literature: copyright protection for, 253–54; on experience of modern life, 62–68, 71–72; and the good life, 282–83; on happiness, 71–72
litigation: corporatism and, 165, 167; innovation stifled by, 165, 248; on intellectual property rights, 253–54; money culture and, 248; in U.S., rise of, 165, 248
living standards: decreases in, population growth and, 106n20; gains in, as material benefit of modern economies, 40, 43, 52
local banks, decline of, 303–4
London (England): Dickens’s experience of, 64–65; economic inclusion and dynamism in, 64, 64n6; infectious diseases in, decline of, 49; wages in, 45, 45n3
Long Depression of 1873–1879, 116
longevity, effects of modern economies on, 55
Lorrain, Claude, 68
Louis-Philippe (king of France), 95, 117
Louis XIV (king of France), 162
Lovecraft, H. P., 283
Lowenstein, Louis, 243
Lowenstein, Roger, 243
luck, in innovation, 33
lumpenproletariat, 295
Lutheranism, 78
MacArthur, Charles, 64n7
Machlup, Fritz, 24n2
macro uncertainty, 37
Maddison, Angus, The World Economy, 3
Mahler, Gustav, Songs of a Wayfarer, 273n3
Maillol, Aristide, Ile-de-France, 139
majority, tyranny of the, 93
“Make It New!” (Pound), 75
making a difference, 285
Malthus, Thomas, 9
managerial revolution, 241
managers: professional, rise of, 241–43; socialist, incentives of, 124, 125; socialist, innovation by, 127–28
Mann, Thomas, Buddenbrooks, 67
manufacturing: in post-1960s economic decline, 234–35; in recovery of dynamism, 319–20
“Man Who Made His Mark, The” (Maugham), 29n6
March on Rome (1922), 144
March Revolution (1848), 117
marginal tax rates, 175, 247n7
market capitalization: definition of, 187; as indicator of innovation, 187–91, 188f, 189f, 190f, 191f; in measurement of job satisfaction, 204–5
market-cap-to-output ratio, 187–91, 188f
market economies: equilibrium in, 9; wage setting in, 290. See also capitalism; socialism
Marriage of Maria Braun, The (film), 174
Marshall, Alfred: career of, 56n1; Elements of Economics, 56n1; on experience of work, 56–57, 58, 278; Principles, 47n7
Martin, Peter, 90
Marx, Karl: The Communist Manifesto, 41n1, 109, 117, 119; on dignity of work, 118; on Gotha Program, 119n5; historical determinism of, 10, 37; on institutions, role of, 9n11; on lumpenproletariat, 295; on materialism, 97; on modernization, 108–9; on productivity growth, 41; Tönnies compared to, 137, 137n2; working class wages and, 46
Marxian socialism, 118, 120. See also communism
mass flourishing (nationwide prosperity): definition of, vii; economic justice in, 308; history of rise and fall of, vii, ix; innovation in (See innovation); personal flourishing in, vii; political engagement and, 309; public memory of experience of, viii; public recognition of mechanisms of, vii–viii
mass innovation, in modern economies, 53–54, 308
mass production, 276n7
mastery, in the good life, 277, 279, 284
material effects of modern economies, 41–54; on disease and mortality, 48–50, 55; on economic inclusion, 47; on living standards, 40, 43, 52; popular opinion on, 45–48, 51–52; on productivity growth, 40, 41, 42–43; on unemployment, 50–51, 115–16; on wage growth, 43–50, 52, 109, 114; on working class, 45–48
materialism: in commercial era, 97; corporatism’s critique of, 139; and the good life, 286–87; in literature, 66–67
Maugham, Somerset, “The Man Who Made His Mark,” 29n6
Maurras, Charles, 151
“maximin” criterion, 294n3
Mayer, Marissa, 250
McChesney, Robert, 256
McCloskey, Deirdre, 8
McDonalds, 287
McKinsey & Company (consulting firm), 24
Means, Gardiner, The Modern Corporation and Private Property, 243
means to an end: vs. the good life, 271; pragmatists on, 275
medical practice: government role in, 255, 258; improvements in, with rise of modern economies, 50; in U.S. vs. Europe, 258
Medicare, expansion of, 259–60
Medicis, 91
Meeker, Mary, 259
Meistersinger, Die (Wagner), 74, 137
Melville, Herman: The Confidence-Man, 67, 68n12; Moby-Dick, 67–68, 68n12
men: employment rates of, decline in, 310; wage inequality among, 227
mental stimulation, through work, 56–58, 61–62, 118
mercantile capitalism, 2–5; bubbles and crashes in, 115; chartered companies in, 89; contemporary critics of, 2, 2n2; culture of, 97; definition of, 2; economic knowledge in, 2–5; experience of work in, 36, 59, 60; vs. modern capitalism, 26, 41, 110; vs. modern economies, 36, 59, 60; origins and rise of, 2, 96–97
Merton, Robert, 167
Michelangelo, 99
Mickelthwait, John, The Company, 90n8
Micklejohn, Alexander, 296
micro uncertainty, 37
middle class: music of, 72; rise of, 52
Milanović, Branko, Liberalization and Entrepreneurship, 171, 173
military conflict, in mercantile era, 2
military-industrial complex, 251
Milken Institute, 204
Mirrlees, James, 294n3
Mises, Ludwig von, on feasibility of socialism, 121–25, 127–29, 131, 133
Mitchell, Broadus, 6n8
Mittal, Lakshmi, 322
Mitterand, Danielle, 246
Mitterand, François, 246
Moby-Dick (Melville), 67–68, 68n12
modern, definition of, 98
modern capitalism: company law in, 205–6; creativity in, 35, 35n11; debate over alternatives to, 110, 302–5; definition of, 110; dynamism in, recognition of role of, 317; economic institutions of, 204–7; economic justice in, 293, 300–307; the good life in, 301; Great Transformation to, 264–65; job satisfaction in (See job satisfaction); vs. mercantile capitalism, 26, 41, 110; nonmaterial rewards of, 269 (See also modern life); nonparticipants in, 305–6; progressiveness of, 41, 41n1, 109; public role in establishment of, 113; selection mechanisms for ideas in, 24–26
Modern Corporation and Private Property, The (Berle and Means), 243
modern economies: capitalist (See modern capitalism); corporatism’s critique of, 135–43, 150; current decline of, 313–16; definition of, ix, 19, 41n1; discontent with, 114–17; economic justice in, xii, 292–96; experience of working and living in (See modern life); formation of (See modern economies, formation of); the good life in, xi–xii, 307–8; income and wealth disparities in, 114–15; inner workings of, 22–36; innovation in (See dynamism; innovation); material effects of (See material effects); modern values in origins of, x; mutual gain from exchange of services in, 289–90, 305; non-capitalist, debate over possibility of, 110; nonmaterial effects of (See modern life); progressiveness of, 41, 41n1, 109; selection mechanisms in, 24–26
modern economies, formation of, 77–110; economic culture in, 96–104; economic institutions in, 81–92, 314; end of, 109–10; political institutions in, 93–96; population density in, 104–8; scholarship on, gaps in, 77–79, 108–9
modernism (modernity): corporatism’s critique of, 135–43; definition of, 98; economic (See modern economies); origins and development of, 1, 99–102
modernization: industrialization as stage in, 108–9; in Italy, 145; national mythologies on, 80; scholarship on history of, 108–9
modern life, ix–x, 55–76; in capitalism vs. corporatism, 269; changes to experience of work in, 55–62; dynamism in origins of, 15; as the good life, xi, 307–8; literature on experience of, 62–68, 71–72; music on experience of, 72–75; paintings on experience of, 68–72; resistance to, viii
modern societies: definition of, 98, 306; origins of, x, 98; traditional elements in, 305–6, 307
Modern Times (film), 52
modern values, 98–104; corporatism’s critique of, 135–43; current status of, 315–16; economies based on (See modern economies); examples of, x, 98–99; international differences in, 103–4, 285–86; and job satisfaction, 211–15, 214f; measurement of, 212, 215t; origins and development of, x, 99–102, 315; in recovery of dynamism, 308–9, 323–24; struggle between traditional values and, viii, x–xi, 211–12, 308, 315–16; transmission of, 323–24; vitalism in, 285–86
monarchy, British, limits on powers of, 86–87
money culture, in post-1960s economic decline, 246–48
monopolies: chartered companies as, 89; in modern economies, 140; “natural,” 241; progressive critique of, 241; U.S. busting of, 154
Montaigne, Michel de, 282, 298; Essais, 100
moral hazards: in corporatism, 178–79; in democracy, 178
morality: vs. ethics, 208; modern, 211
Morgenstern, Oskar, 129n12
Morris, Charles, The Dawn of Innovation, 319
mortality: effects of modern economies on, 48–50, 55; after retirement, 62
mortgages, government role in, 252–53, 311
motherhood, 299
multiculturalism, and socialism, 173
multifactor productivity. See total factor productivity
music: diversity in, 38; experience of modern life depicted in, 72–75; innovation in, 72–73; interactivity in, 39; source of ideas in, 30
Mussolini, Benito: career of, 143–44; corporatism under, 142, 143–47, 170; The Doctrine of Fascism, 145; Four Speeches on the Corporate State, 145, 145n8, 146
mutual aid societies, 50
mutual funds: reform of, for recovery of dynamism, 321; structural faults of, as source of post-1960s economic decline, 243–44
Mynors, Roger, 275n5
Myrdal, Gunnar, 56–57, 58, 278
myths: of economic success, 308; national, 80
Nagel, Thomas, 99n13, 284; The Possibility of Altruism, 208
Napoleonic Code of 1804, 85
Napoleonic Wars, 115
National Economic Chamber (Germany), 148
National Economic Council (Germany), 149
national economies, as innovation system, 20. See also specific countries
nationalism, German, 147
National Labor Relations Act of 1935 (U.S.), 154
National Labor Relations Board (U.S.), 154
national mythologies, 80
National Opinion Research Center, 231n9
national prosperity. See mass flourishing
National Recovery Act of 1933 (U.S.), 152
National Recovery Administration (NRA), 152–53
National Socialist German Workers Party (NSDAP), 147. See also Nazi Germany
“natural” monopolies, 241
natural resources, in innovation, 78–79
Nazi Germany: anti-Semitism in, 141n5, 147; authoritarianism in, 133; corporatism in, 147–50, 155–57; economic performance of, 155–57; Hayek’s response to, 132n15, 133; women in labor force of, 195
needs, hierarchy of, 277
Nelson, Richard, 142; “How Medical Know-How Progresses,” 319
Nelson-Phelps model, 29n6
neoclassical economics: happiness in, 277–78; welfarism of Keynes in, xi
neo-neoclassical economics, 11
Netherlands: chartered joint-stock companies of, 89; corporatism in, measurement of, 179–82; corporatism in, performance of, 182–86; economic knowledge in, 12; economic performance of, recent, 171–73, 176, 182–86; mercantile capitalism in, 5, 115; Wassenaar Agreement in, 161
net (after-tax) wage, 227n6, 260–61
new corporatism, 166–68, 265–66
New Orleans, jazz in, 75
Newton, Isaac, 11
New York, Philharmonic Society of, 72
New Zealand, corporatism in, 181
Nicomachean Ethics (Aristotle), 271, 271n2, 284
Nietzsche, Friedrich, 101, 281–82; The Will to Power, 282n16
Nightingale, Florence, 286
NIMBY, 83
Nocken, Ulrich, 149
nonmaterial effects: job satisfaction as (See job satisfaction); of modern economies (See modern life)
nonparticipants in economy, economic justice and, 298–300, 305–6
nonpecuniary motives, in dynamism, 25, 25n3, 29
nonprofit sector, 298, 299, 306
“Non Sequitur of the ‘Dependence Effect,’ The” (Hayek), 34n9, 129n12
North American Free Trade Agreement (NAFTA), 266–67
Northrop, 34
Norway: corporatism in, measurement of, 181–82; corporatism in, performance of, 182–84; economic performance of, recent, 171–73, 182–84, 320; job satisfaction in, 207; mercantile capitalism in, 5
Noyce, Robert, 27
NRA. See National Recovery Administration
NSDAP. See National Socialist German Workers Party
nutrition, effects of modern economies on, 48, 49
Obama, Barack, 313
Oberton, Merle, 64n7
observations, in creation of ideas, 30
Occupy Wall Street protests, 291
OECD. See Organisation for Economic Co-operation and Development
OECD Jobs Study, The (OECD), 222
oligarchic economies, as type of corporatism, 26
Olson, Mancur, The Rise and Decline of Nations, 319
Omidyar, Pierre, 205
only children, 250
opportunity costs, in socialism, 122, 126
Organisation for Economic Co-operation and Development (OECD), 161, 180, 182, 187, 229; Economic Outlook, 173; The OECD Jobs Study, 222
Organization of National Labor Act of 1934 (Germany), 148
Orwell, George, 65
Oswald, Andrew, 196, 231, 231n10
output, of dynamism, measurement of, 21. See also productivity
output per unit of capital, 220
output per worker (labor productivity): in corporatism vs. capitalism, 156, 182–85, 184f; growth in, as material benefit of modern economies, 42–43; market cap in relation to, 187–88, 188f; in mercantile era, 3–5, 3n3, 4n4; 19th-century growth in, 5–8; in socialism vs. capitalism, 177; synonyms for, 42; 20th-century growth in, 8; wages in relation to, 44–45, 47. See also specific countries
outsiders, in corporatism, 178–79
Ozment, Suzanne, 66
Paine, Thomas, Common Sense, 136
paintings, experience of modern life depicted in, 68–72
Pajama Putsch, 152n15
panics, financial, 115
parallel economies, 306
Paris (France): February Revolution in, 117; wages in, 45, 45n3
Parliament, British: on chartered companies, 89; democracy in, 95; in Glorious Revolution, 86; on patents and copyrights, 253
Parliament, Italian, 144
Patent Act (U.S.), 85
patents: origins of, 85, 253; pharmaceutical, 254n11; problems caused by, 253–54
pauperism, reduction in, as social benefit of wage growth, 48
peace, during rise of modern economies, 53n15
Pecora, Ferdinand, 245
Pecora Commission, 154
pecuniary motives, in dynamism, 25, 25n3, 29
Peirce, Charles, 58n3
penicillin, 33
performance, economic: of corporatism (See corporatism, performance of); economic culture in, 103–4, 210–11; in good economy, 269–70; of socialism, claims vs. evidence on, 170–78. See also specific countries
Perón, Juan, 152
Perry, Claire, 55
personal achievements: in the good life, 284, 285; in modern experience of work, 59
personal flourishing: definition of, vii, 15; desire for, 287–88; eudaimonia as, 284; in the good life, 284–85, 287–88; in mass flourishing, vii
personal growth: careers as means to, 65–66; as modern value, 99; in socialism vs. capitalism, 119; in vitalism, 99n13
personal hygiene, effects of modern economies on, 49
personal knowledge: in creation of ideas, 30–31, 31n7, 101; in the good life, 273–77, 284
Petipa, Marius, 75
pharmaceutical industry, 254, 254n11
Phelps, Edmund S., 106n20, 167n30, 177n3, 198n4, 204, 205, 206, 208n16, 212, 222, 224n4, 247n7, 252n9, 261n17, 322; Fiscal Neutrality toward Economic Growth, 263; Rewarding Work, 240, 292; “The Unproven Case for Tax Cuts,” 263
Philharmonic Society of New York, 72
Phillips, A. W., 51
physical capital, in value of companies, 187
Picasso, Pablo, 139
Pico della Mirandola, Giovanni, 99
Pigou, Arthur Cecil, 56n1
Pius XI (pope), 139
Pixar, 33
pluralism: in dynamism, 38; of values, and economic justice, 305–6
Poland, market socialism in, 125
Polanyí, Michael, 53n15
policy, economic: impact on innovation, 206; in reaction to post-1960s economic decline, 225–27, 228–30; in reaction to stagnation, 312–13; traditional values in, 260
Polish-Lithuanian Constitution of 1791, 93
political engagement, in U.S., 309
political institutions: in corporatism, 142–43; in formation of modern economies, 93–96
Polo, Marco, 59
Pop Art, 75
Popolo d’Italia, Il (newspaper), 144
Popper, Karl, 9
popular music, 72
popular opinion. See public opinion
population density: definition of, 105; in formation of modern economies, 104–8
population growth: and decrease in living standards, 106n20; in formation of modern economies, 104–8; historical records on, 107; in mercantile era, 3, 4–5
Portugal: corporatism in, 151, 181; economic performance of, recent, 171; job satisfaction in, 214
positional goods, 60
Possibility of Altruism, The (Nagel), 208
Pound, Ezra, “Make It New!,” 75
poverty reduction, as social benefit of wage growth, 48
Powell, Lewis, 266
powerlessness, in modern economies, corporatism’s critique of, 140
practical knowledge, 30–31, 274, 275
pragmatists, on the good life, 274–79, 281, 283–84
Prebisch, Raúl, 39n16
prices, in socialist economies, 120–25, 127n11, 131
pride, in job satisfaction, 199–201, 200t
primates, 61
prisons: debtors in, 91; mental stimulation in, 61
private banks, 92
private property. See property rights
private sector: in corporatism, 178; in recovery of dynamism, 320–23; in socialism, 119. See also companies; corporations
privatization: in Italy, 144; after Soviet collapse, 127
problem solving: in the good life, 275–77, 284; in modern experience of work, 57–58, 58n3, 61
production, state interventions in, in corporatism, 159
productivity: in corporatism vs. capitalism, 156, 182–85; definition of, 3; growth rate of, 190n14; levels of, 22, 42; in socialism vs. capitalism, 120, 122, 177; types of, 220. See also specific countries
productivity growth: capital formation and, 7; dynamism in relation to, 22; economic knowledge in, 3, 8; during Great Depression, 8, 222; happiness and, 274n4; vs. level of productivity, 22, 42; as material benefit of modern economies, 40, 41, 42–43; in mercantile era, 3–5; in 19th century, 5–8; and saving, 223–25; slowdown of 1970s in, 192; in 20th century, 8, 222; and wage growth, 44–45
professional associations, in recovery of dynamism, 322, 323
profit motive, lack of, in socialism, 123–24, 125, 128
profits: corporate, 256; social dividends as socialist version of, 120
progressive movement, in U.S., 152, 154, 240–41, 289
progressiveness, of modern economy, 41, 41n1, 109
promethean economies, 71
property rights: current status of, 315–16; and economic performance, 177–78; in formation of modern economies, 83–86; and job satisfaction, 204; origins and rise of, 84–85; stakeholderism and, 315–16. See also intellectual property
property rights theory, 123
prosperity, national. See mass flourishing
Prosperity through Competition (Erhard), 158
Protestant Ethic and the Spirit of Capitalism, The (Weber), 78n2
Protestantism, and economic culture, 78
Prussia: output per worker in, 6; in unification of Germany, 149; urbanization in, 108
public choice theory, 124
public debt. See sovereign debt
public health, effects of modern economies on, 48–50
public opinion: in establishment of modern economies, 113; on material effects of modern economies, 45–48, 51–52
public sector: innovation within, 38, 308; labor unions in, 323; as measure of corporatism, 159, 161–63, 164, 178, 179; in recovery of dynamism, 316–20
public works, chartered companies in, 89
Puccini, Giacomo, 74
Quadragesimo Anno (Pius XI), 139
quests, viii, 74, 136, 280, 288
racial diversity, and wage inequality, 186
Raft of the Medusa, The (Géricault), 69, 69n13
railroads: art depicting, 69–70, 71; European, 116; U.S., 14, 33
Rand, Ayn, 82
rational behavior, in socialism, 122
rational-humanism, 63n5
rationalism, 280
Ravitch, Richard, 259
Rawls, John: on justice, 228, 290–95, 299–300, 305–6; on self-realization, viii, 277, 278, 281, 292; student protests of 1960s and, 290, 290n1; A Theory of Justice, 228, 289, 290–96; on wealth accumulation, 301
Razzell, Peter, 48n9
Reagan, Ronald, 164, 226, 229, 247
real wages per worker: definition of, 4; economic knowledge and, 4; effects of modern economies on, 43–50; in mercantile era, 4–5, 4n4; 19th-century growth in, 5–8; 20th-century growth in, 8
reason: in the good life, 273; in humans vs. animals, 273, 273n3
recessions: of 2008–2009, 175, 235, 236; innovation during, 235, 235n14; job security in, 234; in mercantile capitalism, 115; in post-1960s economic decline, 235–36; recoveries from, 235–36
redistribution, of income, 292, 293–95, 299–300
Red Scare, 134
red tape, bureaucratic, as measure of corporatism, 162, 162n26, 164, 180
Reform Act of 1832 (Britain), 95
regional banks, decline of, 303–4
regulations. See government regulations
Reich, Robert, 62
Reiss, Diana, 61
religion, and economic culture, 78
Renaissance: commerce and foreign trade in, 2; origins of modernism in, 99–100; sparse innovation in, 1
representative democracy, in formation of modern economies, 93–96, 105, 109
Republican Party (U.S.): on social welfare, 260; traditional values in, 260, 317
Rerum Novarum (Leo XIII), 139
resource allocation: in socialism, 119–20, 125–26; in U.S., corporatist influence on, 164–65
responsibility: obligations of, in modernism, 136–37; social, in corporatism, 139
retirement, mental stimulation after, 62
Rewarding Work (Phelps), 240, 292
Reynolds, Joshua, 68
Richberg, Donald, 153
Riefenstahl, Leni, 139
Riesman, David, The Lonely Crowd, 238
rights against the king, 86–87
Ring of the Niebelung, The (Wagner), 74, 119, 141
Rise and Decline of Nations, The (Olson), 319
Risk, Uncertainty and Profit (Knight), 37n13
Road to Serfdom, The (Hayek), 129n12, 131–32, 132n15, 133, 149, 156n21
Robb, Richard, 68n12
Robertson, Dennis H., 56n1, 185
Robinson Crusoe (Defoe), 37, 39, 63, 279n13
Rocco Laws. See Sindical Laws
Rodgers, Richard, 153n16
Rodin, Auguste, The Thinker, 71
Roiphe, Katie, 304
Romanticism: art of, 68–70; conception of the good life in, 280; literature of, 63–64
Rome, ancient: innovation in, 1; legal system of, 84–85, 137, 202; private property in, 84–85
Rome, March on (1922), 144
Roosevelt, Theodore, 154
Rorty, Richard, 58n3
Roscher, Wilhelm, 9n11
Rostow, Walt W., 6, 6n7, 7, 8, 78
Rothschild family, 91
Rousseau, Jean-Jacques, Émile, 279n13
Royce, Josiah, 58n3
rule of law: in democracies, 94; development of, 86–87; role in capitalism, 87, 94
rural areas: creativity in, vs. cities, 107, 107n21; depopulation of (See urbanization)
Ruskin, John, 69
Russia: Bolshevik revolution in, 134; factories of, 52; music depicting modern life in, 75. See also Soviet Union
Rylance, Rick, 66n11
Saalfeld, Diedrich, 6n8
Saarinen, Esa, 39
Sade, Marquis de, 286
Sadka, Efraim, 247n7
Saint-Simon, Henri de, 117, 117n2
Salazar, Antonio, 151
Salgado, Plínio, 151–52, 152n15
Sandberg, Sheryl, 243
Sarbanes-Oxley law (U.S.), 164
Sardinia, Statuto Albertino of, 144n7
saving: in economic culture, 78; productivity growth and, 223–25; in socialist economies, 174
Scandizzo, Pasquale Lucio, 286
Schechter v. United States, 153
Schliemann, Heinrich, 287
Schmitter, Philippe, 143n6
Schröder, Gerhard, 161
Schulz, Nick, 255
Schumann, Robert: Manfred, 73; piano quartet in E flat major, 73
Schumpeter, Joseph: Capitalism, Socialism and Democracy, 10n12, 27n4, 207; on capitalism as culture, 207; on definition of innovation, 20n1; on entrepreneurs, need for, 9–10, 28, 98n12; in German Historical School, 9–10, 9n11; on nonpecuniary returns for entrepreneurs, 25n3; on punctuated equilibrium, 22–23; on science in innovation, ix, xi, 9–12, 10n12, 27; The Theory of Economic Development, 10n12; on vibrancy, 20; Weber’s influence on, 78n2
science: corporatist view of advances in, 142; in dynamism, x; in economic success, 308; entrepreneurs’ use of, ix, 9–10; innovations as separate from discoveries in, 11, 12–13; innovations attributed to discoveries in, ix, xi, 9–12, 26–27; material benefits of modern economies and, 53; publication of findings in, 11; as source of economic knowledge, 9–12
Scientific Revolution, 10–11, 100, 287
Scotland: mercantile capitalism in, 2; poverty in, decline of, 48
sculpture, experience of modern life depicted in, 71
Second Great Depression, 175
Second Industrial Revolution, 13n13
Second Transformation, of U.S. economy, 264–65
Securities Act of 1933 (U.S.), 154
Securities and Exchange Commission, 154
Securities Exchange Act of 1934 (U.S.), 154
Seipel, Ignaz, 151
selection mechanisms, for ideas in modern economies, 24–26
self-actualization: in the good life, 277, 281; in modern experience of work, 58
self-affirmation, in modern experience of work, 58–59
self-discovery: in the good life, 281; in modern experience of work, 59; as modern value, 99; in vitalism, 99n13, 281
self-expression, in modern experience of work, 58–59
self-importance, culture of, 249
self-interest: in corporatism, 148, 152n15; in mercantile economies, 97
self-realization: in the good life, 277, 278, 281; in modern experience of work, 58; Rawls on, viii, 277, 278, 281, 292
self-respect, 81
Seligman, Martin, Flourish, 285
Sen, Amartya, 58n3, 132n15, 133, 277–78, 278n12, 285, 309
Severini, Gino, 71
shadow price, in socialism, 122
Shakespeare, William: Hamlet, 100, 280; Henry V, 278; King Lear, 100
shareowning: in formation of modern economies, 83; structural faults of, in post-1960s economic decline, 243–44
Shaw, George Bernard, 147
Shelley, Mary, Frankenstein, 63–64
Shelley, Percy Bysshe, 64; Prometheus Unbound, 63n5
short-term borrowing, by banks, 244–45, 322
short termism, in management of companies, 243–44, 314, 320–21
Simon, Julian, 106n20
Sindical Laws of 1926 (Italy), 145
Sinn Féin, 151
skilled workers, vs. unskilled workers, wages of, 46, 47
Slaughter, Anne Marie, 197n3
slavery, 81
Smith, Adam: on economic freedoms, 81; on equilibrium in market economies, 9; on “heroic spirit,” 2, 2n2, 15; on joint-stock companies, 90; Lectures on Jurisprudence, 2n2, 97; Marx on, 118, 118n4; on mercantile capitalism, 96–97, 308; The Wealth of Nations, 2n2, 97; on well-being, xi
Smith, Christian, Lost in Transition, 323–24
Snow, C. P., 209n17
social assistance, rise of, 258
social benefits, of wage growth, 47–50
social class. See middle class; working class
social contract, 140, 166, 166n29, 291
Social Democratic Party (SPD), German, 118, 119n5, 134, 141n5, 147
social dividends, in socialism, 120
Social Infrastructure, Index of, 181n8
social insurance: and job satisfaction, 206–7; origins of, 258
social interchange, in modern experience of work, 58, 60–61
socialism, 113–34; agenda of, 117–20, 132–33; coining of term, 117n2; competition in, 24, 124–25; corporatism’s critique of, 150; corporatism’s use of aspects of, 141; critique of capitalism in, 117–20; debate over feasibility of, 121–33; definition of, 170; discontent with modern economies in origins of, 114–17; economic culture of, 120; economic institutions of, 120; economic justice in, lack of a conception of, 301, 302, 306–7; fear of, 133–34; the good life in, lack of a conception of, 270; innovation in, lack of, 127–29, 130; performance of, claims vs. evidence on, 170–78; rise of interest in, 116–17; types of, 118; values of, 118–20, 132–33. See also specific countries
social media, in economic culture, 250
social protection, in corporatism, 140, 167, 178
social responsibility, in corporatism, 139, 141, 147, 166
social welfare: employment affected by, 260–63; expansion of, 229–30, 258–60
society: in the good life, 272, 276; role of in dynamism, 36–40. See also modern societies; traditional societies
Socrates, 297
SOEs. See state-owned enterprises
sole proprietorships, 88
solidarity, in corporatism, 138, 141, 166, 178
Sombart, Werner, 9n11
Sondheim, Stephen, 276
Sonny Bono Act of 1998 (U.S.), 254
Sorel, Georges, 151
Soros, George, 287
South America, corporatism in, 151–52. See also specific countries
South Korea: corporatism in, 152, 181; modernization of economy of, 41–42
sovereign (public) debt, U.S.: banks holding, 251–52; in financial crisis of 2007–2008, 312; tax increases to service, 261–63
Soviet Union: privatization after collapse of, 127; socialism in, outcome of, 121, 123, 127, 130. See also Russia
Spain: corporatism in, interwar, 151; corporatism in, measurement of, 179–82; corporatism in, performance of, 182–87; economic growth in, postwar, 159n23; economic performance of, recent, 171–74, 182–87, 195n2; job satisfaction in, 199, 214; literature on modern life in, 63; 19th-century productivity in, 8
Spark, Muriel, 63n5
SPD. See Social Democratic Party
special interests, need for limitation of power of, 320
Spence, Christine, 48n9
Spengler, Oswald, The Decline of the West, 79n3
stability, zones of, 256, 256n15
stagnation: policy responses to, 312–13; rejection of possibility of, 312
stakeholderism, in corporatism, 138, 166
Stalin, Joseph, 52
standard of living. See living standards
Stanford University, 290n1
state. See government
state-led economy, in corporatism, 141, 166, 302
state-owned enterprises (SOEs), performance of, 170–71, 172t. See also socialism
state role. See government role
state socialism, 118
statism, as a measure of corporatism, 181–82
statistics: outliers in, 198–99; on small vs. large countries, 199n5
Statute of Anne of 1709 (England), 253
Statute of Monopolies of 1623 (England), 253
Statuto Albertino, 144n7
Stephenson, George, 12
Sternhell, Zeev, 150
Stigler, George, 208n16
Stilwell, Silas, 91n10
stock markets: in measurement of innovation, 187–88; in measurement of job satisfaction, 204–5
Stone, Irving, Lust for Life, 283
strategic vision: definition of, 28; in dynamism, 28, 35
Strauss, Richard, 74
Stravinsky, Igor, 30, 72–73, 75
structural faults, as source of post-1960s economic decline, 241–46
student protests of 1960s, 290–91, 290n1
Study of History, A (Toynbee), 79n3
subprime mortgages, 252
subsidies: in corporatism, 178; in economic justice, 292, 295, 299–300, 306; for inclusion, 240, 292; to industries, 254–55, 319–20; in recovery of dynamism, 319–20
subsistence farming, migration to wage labor from, 50–51
success, economic, myths of, 308
Sullivan, Arthur, 283
super-capitalism, 145
superproductivity, 39
Supersonic Transport, 254
supply-side economics: and financial crisis of 2007–2008, 312; and post-1960s economic decline, 226
Supreme Court, U.S.: on corporate rights, 89, 266; on National Recovery Administration, 153
Swan Lake (Tchaikovsky), 75
Sweden: corporatism in, measurement of, 179–82; corporatism in, performance of, 182–85; dynamism of, 22, 320; economic performance of, recent, 171–73, 176–77, 182–85, 320; job satisfaction in, 198, 199, 201, 214; mercantile capitalism in, 5; social welfare in, 258
Switzerland: corporatism in, measurement of, 180–82; mercantile capitalism in, 5
Sylos-Labini, Paolo, 157
Synthetic Fuels Corporation, 254
take-off economies: coining of term, 6; drivers of, 8–15; emergence of indigenous innovation in, 14–15; in 19th century, 6, 7; output per worker in, 6; real wages per worker in, 6; in 20th century, 8
Tappan, Arthur, 91n10
tax(es): British revenues from, 46, 47; economic justice in, 294–95; economic performance and, 202; marginal rates, 175, 247n7; slowdown of economic growth and, 311; special interest legislation in, 320; value-added, 202
tax(es), U.S.: Bush’s (George W.) cuts to, 226, 247, 263, 311, 312, 318; corporatist influence on, 164–65; in financial crisis of 2007–2008, 311, 312; and post-1960s economic decline, 226, 229, 230; public debt serviced by, 261–63; Reagan’s cuts to, 164–65, 226, 247; for redistribution vs. general interest, 260, 264; and social welfare, 259; traditional values in, 260; and unemployment, 226, 227, 227n6
tax neutrality, 226
Taylor, Mark C., Field Notes from Elsewhere, 71
Tchaikovsky, Peter Ilyich, 75
teamwork: in dynamism, 38–39; in modern experience of work, 58, 58n3
Teapot Dome scandal, 154
techno-nationalism, 142
textile industry, British, 12, 14
Thatcher, Margaret, 163–64, 195, 237, 248–49
Theory of Economic Development, The (Schumpeter), 10n12
Theory of Justice, A (Rawls), 228, 289, 290–96
They Made America (Evans), 33, 319
thinking, decline of, 250
Thompson, Hunter S., 219
Tilman, Leo, 322
Titmuss, Richard, The Gift Relationship, 208
Tobin, James, 187
Tobin’s Q, 187
Tocqueville, Alexis de: Democracy in America, 79n3; on democracy in U.S., 94–95; on economic culture of U.S., 102–3, 309; on nature resources of U.S., 78–79
Tönnies, Ferdinand, 137, 137n2, 147
Topsy-Turvy (film), 283
total factor productivity (multifactor productivity): in corporatist economies, 184n11; definition of, 177, 220–21; in post-1960s decline in U.S., 220–21, 221f, 225, 226; in socialist economies, 177
total satisfaction, 198n4
Toynbee, Arnold, 79; A Study of History, 79n3
trade, foreign: in early economies, spread of, 2, 77; and job satisfaction, 204n14; postwar expansion of, 158; and smallpox, 48
trademarks, origins of, 85
traditional economics, on productivity growth in 19th century, 7–8
traditional economies: definition of, xii; economic justice in, xii, 302, 305–6; experience of work in, vs. modern economies, 57–59, 109; initiative taking in, 58–59, 98, 98n12; wage inequality in, 302
traditional societies: human fulfillment in, 298; modern elements in, suppression of, 306–7
traditional values: and economic justice for nonparticipants in economy, 298–300, 305–6; economies based on (See traditional economies); examples of, 99; and job satisfaction, 211–15, 213f; measurement of, 212–13, 215t; in policymaking, 260; resurgence of, 250, 308, 315–16; struggle between modern values and, viii, x–xi, 211–12, 308, 315–16; in U.S. political parties, 260, 317
Treatise on Human Nature (Hume), 97
trilateralism, of corporatism, 160–61
tripartism, of corporatism, 147, 148, 160–61, 267
trust, in economic culture, 208–9
tulip mania, 115
Twain, Mark, 91n10
typhoid fever, 49
typhus, 49
tyranny of the majority, 93
uncertainty, economic, 37, 37n13, 318
underground economy, 174
unemployment: in depressions, 116; effects of modern economies on, 50–51, 115–16; in financial crisis of 2007–2008, 311–12; in post-1960s economic decline, 221–24, 226–27, 231–32, 235; postwar corporatism and, 161; in socialist economies, 171–74; in socialist ethic, 118; tax rates and, 226, 227, 227n6; urbanization and, 50–51
unemployment insurance, 50, 201–2
unions. See labor unions
United Kingdom. See Britain; England; Ireland; Scotland
United States: banking reform in, 154, 245, 321–22; bankruptcy in, 91; banks in, types of, 92; chartered joint-stock companies of, 89; corporatism in (See United States corporatism); democracy in, development of, 94–95; economic culture of, 101–3, 209, 246–50, 309; economic knowledge in, sources of, 11–12; economic performance of, interwar, 155–56; economic performance of, recent, 171–76, 182–86, 192; entrepreneurs in, recognition of value of, 101; financial crises in, origins of, 310–11; financial panics in, 115; formation of modern economy in, 78–79, 94–95, 102–3; frontier of, 102, 108n23; “golden age” narratives of, 237–40; infectious diseases in, decline of, 49; intellectual property rights in, 85; inventions of First Industrial Revolution in, 12; job satisfaction in, 62, 198, 199, 201, 213–14; job security in, 116n1; labor unions in, 323; literature on modern life in, 67–68; mercantile capitalism in, 5; middle class in, rise of, 52; modern values in, 101–3, 136; music depicting modern life in, 72; natural resources of, 78–79; output per worker in, 5–6, 6n6, 7, 7n9, 43; political engagement in, 309; population growth in, 107–8; poverty in, decline of, 48; productivity growth in, 19th-century, 5–8; public opinion in establishment of capitalism in, 113; public sector of, size of, 179; railroads of, 14, 33; real wages per worker in, 5, 6; recessions in, history of, 235–36; recovery of dynamism in, approaches to, 316–24; recovery of dynamism in, prospects for, 308, 317; Second Transformation in, 264–65; social welfare in, 258–60; sovereign debt of, 251–52, 261–63, 312; taxes in (See tax); urbanization in, 60, 108; wars of, 53n15
United States, post-1960s economic decline in, 219–67; corporatism in, 251–58, 265–66; culture as source of, 246–50; early data on, 219–27; European impact of, 221–22, 232–33; “golden age” narratives on, 237–40; government role in, 251–64, 266–67; inclusion affected by, 227–30; innovation in, decline of, 225, 228, 263–64; job satisfaction affected by, 230–33, 231n9, 232f; job security affected by, 233–34, 234n12; origins of, 219–20, 313–14; policy reactions to, 225–27, 228–30; productivity slowdown in, 192, 219–25, 220f, 221f; recessions in, 235–36; structural faults as source of, 241–46; structural shifts during, 234–35; unemployment in, 221–24, 226–27, 231–32, 235; wage inequality affected by, 227–30
United States corporatism: current status of, 317; interwar, 152–56; measurement of, 179–82, 180n6; and post-1960s economic decline, 251–58, 265–66; postwar, 164–65; in Second Transformation, 265–66
universal banks, 92
University of Chicago, 296
“Unproven Case for Tax Cuts, The” (Phelps), 263
unskilled workers: in Dickens’s novels, 64–65; vs. skilled workers, wages of, 46, 47
urban areas. See cities
urbanization: emergence of big cities in, 108; and experience of work in modern economies, 60–61; in formation of modern economies, 104–8; and innovativeness, 39–40, 39n16; and unemployment, 50–51
“Use of Knowledge in Society, The” (Hayek), 31n7
users. See end-users
utilitarianism, 290
Valois, Georges, 135
value-added tax, 202
values: corporatist, 159; in the good life, 285–86; in job satisfaction, 208–15; socialist, 118–20, 132–33. See also culture; modern values; traditional values
Van de Velde, Willem, the Younger, 69
van Gogh, Vincent, 70
Vargas Llosa, Mario, 62
Velasquez, Diego, 68
Venice (city-state), commercial economy of, 2
Venter, J. Craig, 113
Venturesome Economy, The (Bhidé), 319
Vertigo (film), 78n2
vibrancy: definition of, 20, 194; vs. dynamism, 20, 21, 22; economic culture in, 194
Vichy regime, 151
Vienna (Austria): infectious diseases in, decline of, 49; Philharmonic Orchestra of, 72
Vincenti, Walter, 32
Viner, Jacob, 39n16
Virgil, Georgics, 275
virtues, vs. the good life, 272
Visconti, Luchino, 154
visual arts, experience of modern life depicted in, 68–72
vitalism: decline of, 316; definition of, 99n13; in formation of modern economies, 102–4, 105; on the good life, 279–88; origins and rise of, 100, 279–81; revival of, 284
Vittorio Emanuele III (king of Italy), 144
Volcker, Paul, 175
Volkswagen, 160
Voltaire: Candide, 101–2, 275–76; on the good life, 275–76, 280
voluntary corporatism, in Germany, 149–50
volunteer sector, 299
voodoo economics, 226
wage(s): after-tax (net), 227n6, 260–61; in corporatism, 142–43, 186; effects of modern economies on, 43–50, 52, 109, 114; equal, impossibility of, 290, 291–92; happiness in relation to, 52–53; job satisfaction in relation to, 196, 199, 201; justice in distribution of, 291–95, 299–300, 305–6; median, 114, 227–28; output per worker in relation to, 44–45, 47; ratio of wealth to, 223–24, 223n3, 261, 262f; real (See real wages); in relationship between innovation and employment, 222–23, 223n3; social benefits of growth in, 47–50; in socialism, 119–25
wage inequality: in corporatism, 186; justice of, 290, 291–92, 302; in modern capitalism, 302; in post-1960s economic decline, 227–30; rise of, 114–15, 227–28; in socialism, 176–77
wage-productivity ratio, 44–45, 47
wage-wealth ratio, 223–24, 223n3, 261, 262f
Wagner, Richard, 72–73; Die Meistersinger, 74, 137; Ring of the Niebelung, The, 74, 119, 141
Wagner Act of 1935 (U.S.), 154
Wagner’s Law, 260
Wallonia (Belgium), 96
Walt Disney, 254
wars: booms and recessions caused by, 115; during rise of modern economies, 53n15
Wassenaar Agreement (1982), 161
wealth: job satisfaction in relation to, 196, 201; and labor force participation, 260–61, 262f; in money culture, 246–48; ratio of wage to, 223–24, 223n3, 261, 262f; in relationship between innovation and employment, 223, 223n3; social vs. private, 259, 261–63
wealth accumulation: antipathy for, 301; in capitalism, rise of, 108; democratization of, 115; disparities in, rise of, 114–15; in economic culture, 104; as economic freedom, 83–84; in economic justice, 301–2; and the good life, 286–87; motivations for, 286–87; in socialism, 119
Wealth of Nations, The (Smith), 2n2, 97
wealthy: income of, vs. working class wages, 47; infectious diseases among, decline of, 49
Webb, James Watson, 91n10
Weber, Max: on economic culture, 78, 97, 194; on economic freedoms, 82; Economy and Society, 78n2; on formation of modern economies, 79, 97; in German Historical School, 9n11; on modernization, 108–9; The Protestant Ethic and the Spirit of Capitalism, 78n2
Wedgwood, Eli, 89
welfare: corporate, 254, 267; social (See social welfare)
welfarism, neoclassical, xi
well-being: in the good life, 285; Smith’s conception of, xi
Wells, David, 48, 48n8, 49, 49n13
Wen Jiabao, 130
West Germany, corporatism in, 157–62
Whale, James, 64
Whitman, Walt, 281
Wiesel, Elie, 249
Wilde, Oscar, 136
Wilhelm (emperor of Germany), 149
William II (king of England), 86
Williamson, Jeffrey, 6n8
Will to Power, The (Nietzsche), 282n16
Wilson, Woodrow, 154
wisdom, in creation of ideas, 28
Wollstonecraft, Mary, 67
women: labor force participation by, 195; self-ownership of, 81–82
Wooldridge, Adrian, The Company, 90n8
work: balance between home and, 304; devaluation of, 229–30; in the good life, 275–78, 304
work, experience of: effects of modern economies on, 55–62; mental stimulation through, 56–58, 118; in mercantile vs. modern economy, 36, 59, 60; modern literature on, 62–68; modern paintings on, 68–72; in traditional vs. modern economy, 57–59, 109. See also job satisfaction
workers, in socialism: incentives of, 122–26, 123n7; rights of, 118
work ethic, in socialism, 123
working class: diet of, 49; effects of modern economies on wages of, 45–48, 114; in Italian corporatism, 145–46; job satisfaction among, 62; music of, 72
Works Project Administration, 153
World Bank, Bureaucrats in Business, 171
World Economy, The (Maddison), 3
World Values Surveys (WVS), 103, 196, 197–98, 199, 210, 211, 212–13, 233, 285–86
World War I: German reparations for, 148; Italy in, 144
World War II: corporatism after, 156–57; Holocaust in, 141n5
writing, expository, 324
Wullschlager, Jackie, 55
Wuthering Heights (Emily Brontë), 64, 64n6
Wuthering Heights (film), 64, 64n7
WVS. See World Values Surveys
Wyler, William, 64n7
Yahoo, 250
zaibatsu, 152
Zakaria, Fareed, 313
Zingales, Luigi, 254
Zoega, Gylfi, 198n4, 204, 205, 206, 261n17, 286
Zola, Émile, 67
zoology, modern views in, 61