It seems odd now to recall that up until a few years ago, the concept of capitalism largely had fallen out of favor as a subject of academic inquiry and critique. Most scholars in the humanities and social sciences regarded the term as too broad, too vague, too encumbered by associations with either Marxism or laissez-faire. Following the collapse of the Soviet Union, capitalism could be taken for granted, it seemed. No person or nation could escape the discipline of efficient, spontaneous, self-regulating, globalizing markets.
Economists cut economies loose from society, institutions, culture, and history. They repositioned their discipline upon models that assumed that rational, utility-maximizing individual parts represented and explained the behavior of the economy-as-a-whole. Many social scientists — especially in political science — embraced these rational-actor models. Others joined historians and humanities scholars in the “cultural turn.” …
The following is the prepared text of the speech given by Minister Haekkerup on September 28, 2013, at The New School, with an introduction by William Milberg.
The word “capitalism,” describing our market-oriented economic system of wage labor, private ownership and the endless drive for wealth accumulation, was invented in the 19th century. For the last part of the twentieth century, “capitalism” was a dirty word. It alluded ever so uncomfortably to exploitation in human interaction and the unequal nature of modern economic society. The word capitalism was represented by euphemisms in economics –- “competitive equilibrium,” “pure competition,” or “monetary production system.” My late colleague Robert Heilbroner found that Gregory Mankiw’s popular textbook, Principles of Economics, a book over 500 pages long and first published in 1998, mentions the word “capitalism” just one time, and that occurs in a footnote.
In 2013, we once again dare to speak the word. Why? Because with the international financial crisis of 2008 and the economic stagnation experienced in much of the industrialized world since then, there is a palpable sense that the system is at risk and in need of scrutiny, as a system. Capitalism, it would seem, is back.