Why Capitalism Persists

(should be a gift link)

This article is a review of Capitalism: A Global History, by Sven Beckert, which I have not read. The review itself, however and IMO, inspires some thought and debate about the nature of relationship between capitalism and liberalism and what we might expect from the future of capitalism in a post-liberal world.

Beckert, a top-rate historian, is clearly skeptical of capitalism. He sees the history of capitalism, commercialism, and trade as one deeply entwined illiberal colonial practices, the subjugation and exploitation of people, and unfair accumulation of wealth. He views capitalism and liberalism as separable, in that, as the reviewer says "He insists that capitalism, the world’s now universal economic system, does not depend on liberalism." The implication is that in a post-liberal world, capitalism will still thrive, but perhaps in its nastier forms without the moderating influence of liberalism.

The reviewer, however, notes that the pluralism inherent in capitalist economies can itself press for liberalism, and thus capitalism and liberalism are more intertwined than some (Beckert) might think. The reviewer also notes that the 20th century–what Beckert decries as "neoliberal capitalism"–that decolonization took places and freedom and quality of life improved globally.

IMO, Beckert–as described in this review–is not wrong about the violent tendencies of commercialism and trade, and it doesn't help modern-day capitalists to ignore that history. What a just and fruitful economic system looks like as liberalism backslides may not be exactly what the textbooks tell us–pragmatism tells us we need to make choices based on the political environment we're in. That said, as the reviewer notes, the marriage of liberalism and capitalism have served as mutually beneficial and reinvigorating forces; even against the onslaught of communist belief and experimentation, liberalism and capitalism persisted. I also question whether "capitalism" really survives if liberal policies are systematically erased… do we just devolve into state, authoritarian, or oligarchic "capitalism"?

So, thoughts? On how closely liberalism and capitalism are intertwined? On what happens to the economic system and the benefits from it in a world of liberal backsliding? On how or if the pluralistic nature of capitalism can help in promoting liberalism? or whatever?