In Search of a Moral Foundation for Capitalism
From Adam Smith to Amartya Sen

Stevens tells the untold story of the search for a moral foundation for capitalism through its leading characters.

Douglas E. Stevens (Author)

9781009434393, Cambridge University Press

Hardback, published 7 December 2023

225 pages
23.6 x 16.3 x 1.9 cm, 0.5 kg

'This is the single most useful book for understanding how the Chicago School in general, and in particular its agency theory with a hyper focus on self-interest has detrimentally impacted capitalism. Moreover, the personal stories of famous economic thinkers reveal insights about a path forward. To a society that proudly supports capitalism built on a moral foundation in which we achieve a prosperity that lifts all boats. I have had a long-term friendship with two of the economists profiled and I guarantee that the interpretation in this book hits the nail on the head.' Bartley J. Madden, author of Value Creation Principals: The Pragmatic Theory of the Firm Begins with Purpose and Ends with Sustainable Capitalism

The search for a moral foundation for capitalism has a long history that continues to unfold, yet many are unaware of this search or its implications for the future of capitalism. The recent pandemic has uncovered cracks in the foundation of capitalism and raised doubts regarding its ability to meet the broader needs of society. In Search of a Moral Foundation for Capitalism explains the continuing demand for a moral foundation from the perspective of business leaders, business educators, and policymakers, and tells the story of the search for that moral foundation through its leading characters. By presenting the life stories and writings of these leading characters – from Adam Smith to Amartya Sen – this book reveals the rich moral critique provided by these great thinkers and explains how that rich critique was lost through the influence of the Chicago School and its emphasis on self-interest.

1. Introduction: the continuing demand for a moral foundation
2. The moral economist: Adam Smith
3. Religion as a moral foundation: Max Weber and R. H. Tawney
4. Humanism as a moral foundation: Karl Polanyi and John Maynard Keynes
5. Self-interest as a moral foundation: the Chicago school and Ayn Rand
6. Neoclassical economists join the search: Vernon Smith and Michael Jensen
7. Rescuing capitalism from the capitalists: Amartya Sen
8. The promise of capitalism: joining the search.

Subject Areas: Macroeconomics [KCB]