Economics - Innovation - Inclusive Growth - Public Purpose

Rethinking Capitalism

Western capitalism is in crisis. For decades investment has been falling, living standards have stagnated or declined, and inequality has risen dramatically. Economic policy has neither reformed the financial system nor restored stable growth. Climate change meanwhile poses increasing risks to future prosperity.

In Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth, co-edited by Mariana Mazzucato and Michael Jacobs, (published by Wiley / Political Quarterly, 2016) some of the world’s leading economists propose new ways of thinking about capitalism. The contributors include Nobel Prize winning economist Joseph Stiglitz, Chief Economist of the Bank of England Andy Haldane, Professor William Lazonick, Professor Carlota Perez, Mazzucato and many others.

In clear and compelling prose, each chapter shows how today’s deep economic problems reflect the inadequacies of orthodox economic theory and the failure of policies informed by it. The chapters examine a range of contemporary economic issues, including fiscal and monetary policy, financial markets and business behaviour, inequality and privatisation, and innovation and environmental change. The authors set out alternative economic approaches which better explain how capitalism works, why it often doesn’t, and how it can be made more innovative, inclusive and sustainable. Outlining a series of far-reaching policy reforms, Rethinking Capitalism offers a powerful challenge to mainstream economic debate, and new ideas to transform it.

“A fine collection of chapters by leading progressives on what went wrong — low growth, flagging  investment and innovation, too few jobs and too much carbon — and what might be done.  May it close the door on the failed “mainstream” and open another, toward a […] radical view of economics and economic policy.”

James K. Galbraith, Lloyd M. Bentsen, Jr.
Professor in Government and Business Relations, University of Texas

“Economic policy must change radically and quickly if we are to tackle… deep and inter-related problems. That means, in turn, a deeper understanding of the workings of our capitalist system. This book is a very valuable and thoughtful contribution to these crucial tasks.”

Lord Nicholas Stern, IG Patel
Professor of Economics and Government at the London School of Economics

“This excellent book could not be more timely. With the rise of populist protest movements across the west, the hard realities of stagnating real wages and entrenched inequality, it is plain that modern capitalism is not working. Rethinking economics is invaluable contribution to the challenging tasks ahead.”

Will Hutton, Principal Hertford College Oxford

“We badly need fresh thinking in the world of economic policy making today – and this book offers a plethora of provocative ideas. It tackles numerous sacred cows in a lively and provocative manner and challenges our assumptions. It is thus a very valuable and welcome contribution to the current debate about why so many western economies have performed poorly since the great crisis.”

Gillian Tett, Financial Times

"Thought provoking and fresh - this book challenges how we think about economics.”
Gillian Tett, Financial Times

Download the introduction for free | Buy the book with 20% discount (code: SSHJB)

Table Of Contents

1: Rethinking Capitalism: An Introduction (Michael Jacobs and Mariana Mazzucato)

2: The Failure of Austerity: Rethinking Fiscal Policy (Stephanie Kelton)

3: Understanding Money and Macroeconomic Policy (L. Randall Wray and Yeva Nersisyan)

4: The Costs of Short-termism (Andrew Haldane)

5: Innovative Enterprise and the Theory of the Firm (William Lazonick)

6: Innovation, the State and Patient Capital (Mariana Mazzucato)

7: Investment-led Growth: A Solution to the European Crisis (Stephany Griffith-Jones and Giovanni Cozzi)

8: Inequality and Economic Growth (Joseph Stiglitz)

9: The Paradoxes of Privatisation and Public Service Outsourcing (Colin Crouch)

10: Decarbonisation: Innovation and the Economics of Climate Change (Dimitri Zenghelis)

11: Capitalism, Technology and a Green Global Golden Age: The Role of History in Helping to Shape the Future (Carlota Perez)

Mazzucato and Jacobs launch Rethinking Capitalism at the University of Sussex

New Italian edition
Ripensare il capitalismo

EC Commissioner for Research Carlos Moedas
appreciating Rethinking Capitalism

Rethinking Capitalism Events

PERC, Goldsmiths

PERC, Goldsmiths

London, United Kingdom – Political Economy Research Centre (PERC) and Centre for the Understanding of Sustainable Prosperity (CUSP) Lecture by Mariana Mazzucato and Michael Jacobs on Rethinking Capitalism, chaired by Tim Jackson, CUSP. Event website.

University of Sussex

University of Sussex

Falmer, United Kingdom – Jubilee Lecture Theatre. Speakers are Mariana Mazzucato, Michael Jacobs, Carlota Perez (LSE), Stephany Griffith-Jones (IPD, Columbia University), Steve McGuire (Head of School, BMEc), Andrea Cornwall (Head of School, Global Studies) and Melissa Leach (Director, IDS), jointly hosted by the Schools of Business, Management and Economics and Global Studies and by the Institute of Development Studies.
Event website. Storify. SPRU news story & audio recording.

European Committee of the Regions

European Committee of the Regions

Brussels, Belgium –  Keynote and presentation on ‘Rethinking Capitalism’ moderated by Kerstin Born, Centre for European Policy Studies with discussant Pawel Swieboda, European Commission , Deputy Head of the European Political Strategy Centre. Event website.

 

IPPR event, Labour Party Conference

IPPR event, Labour Party Conference

Liverpool, United Kingdom Pullman Hotel. Speakers are Michael Jacobs, Vicky Pryce (Centre for Economics and Business Research (CEBR) and Lord Stewart Wood, hosted by the Institute of Public Policy Research. Event website.

Birkbeck University

Birkbeck University

London, United Kingdom – Birkbeck Cinema. Mariana Mazzucato and Michael Jacobs in conversation with Will Hutton (Principal of Hertford College, Oxford, and Chair of the Big Innovation Centre), Deborah Mabbet (Professor of Public Policy, Birkbeck) and Andrew Gamble (Emeritus Professor of Politics at the University of Cambridge). Hosted by Political Quarterly.
Event website.

Media articles by Mazzucato and Jacobs

Breaking with Capitalist Orthodoxy

Breaking with Capitalist Orthodoxy

“We need to better understand how modern capitalism works—and why, in key ways, it now doesn’t.” Michael Jacobs and Mariana Mazzucato

The Brexit-Trump Syndrome: it’s the economics, stupid

The Brexit-Trump Syndrome: it’s the economics, stupid

“The Brexit and Trump electoral results make this increasingly look like the beginning of a new political era. If policymakers are to respond in better ways to the new popular mood, they need to engage in a fundamental rethinking of capitalism, guided by better economic theory and a more dynamic relationship between theory and policy.” Also published by Evonomics

Why Economic Recovery Requires Rethinking Capitalism

Why Economic Recovery Requires Rethinking Capitalism

“Mission-oriented public investment is vital to spur a revival of private-sector investment… What economies need, today, is not only a new approach to investment, but also a New Deal in terms of reinvestment: a new compact between the public and private sectors that can lead to more inclusive growth.”

An Entrepreneurial Society Needs an Entrepreneurial State

An Entrepreneurial Society Needs an Entrepreneurial State

“Innovation-led growth can square a circle that is challenging modern capitalism: how to generate sustained and sustainable economic growth, built on high-value, well-paying jobs. This is at the core of entrepreneurial societies, and it is a good objective. The problem is how to get there.”

New Times: why it’s time for progressives to rethink capitalism

New Times: why it’s time for progressives to rethink capitalism

“The time is ripe for progressives to make their case with confidence and to rethink capitalism. Narratives about wealth creation must become more collective, as should the distribution of the rewards which result. The public realm matters to wealth creation, just as it matters to building a stronger and more just society.” In German

A real industrial revolution

A real industrial revolution

“If Theresa May is serious about industrial strategy, she must begin a fundamental shift in how economic growth is understood, and fostered. Growth has a direction as well as a rate, and the aim of industrial-innovation policy must be to set that direction.”

Rethinking Capitalism Reviews and other articles

L’innovazione perduta della Main Street

L’innovazione perduta della Main Street

“In Ripensare il capitalismo, la centralità è assegnata all’innovazione e al rifiuto di miopi politiche economiche incardinate su una suicida dimensione temporale di breve periodo.” Benedetto Vecchi

Review

Review

“Though the crash was what awoke everyone, the foundations of the crisis had been developing for decades. ‘These failings [of western capitalism] are not temporary; they are structural,’ write Mariana Mazzucato and Michael Jacobs in the preface to Rethinking Capitalism. The editors describe a perfect crisis, at least 30 years in the making.” Yuan Yang

The industrial strategy acknowledges a fundamental truth about growth

The industrial strategy acknowledges a fundamental truth about growth

“Industrial strategy acknowledges that wealth is co-produced by the private and public sectors working together, and successful economies need both. The chief theoretician of this understanding in recent years has been the economist Mariana Mazzucato, who has argued that the best way of driving investment in innovation is for government to set ‘missions’ to address major social challenges.” Michael Jacobs

Bon. Maintenant, réinventons le capitalisme!

Bon. Maintenant, réinventons le capitalisme!

“Mme Mazzucato, donc, considère qu’il est grand temps de réinventer le capitalisme, en veillant à ce que tout un chacun en bénéficie, et non plus une infime partie des gens au détriment de la majorité des autres.”

Best Books of 2016

Best Books of 2016

On Rethinking Capitalism: “A series of essays by a number of prominent economists spells out why our policies have failed to address rising income inequality, slow productivity growth, and an overall sense that something is wrong with the economy. Not everyone will agree with the fixes, but Mazzucato and her colleagues do an excellent job in diagnosing the ailments.”

Capitalism in the Time of Trump?

Capitalism in the Time of Trump?

As the world turns upside down, Mariana Mazzucato discusses how to shape an economy that works for everyone (Interview with Lynn Parramore)

Capitalism Behaving Badly

Capitalism Behaving Badly

“[Rethinking Capitalism] attempts to provide, as explained in its introduction, “a much better understanding of how modern capitalism works—and why in key ways it now doesn’t.” Together, the essays provide a compelling argument that we need more coherent and deliberate strategic planning in tackling our economic problems, especially in finding more effective ways to reduce greenhouse-gas emissions.” David Rotman

Rethinking Capitalism On The Radio

BBC Radio 4 Today

BBC Radio 4 Today

Professor Mazzucato and Zanny Minton Beddoes, Editor of the Economist, discuss globalization in the wake of the UK’s EU referendum. Listen

BBC World Service Newshour

BBC World Service Newshour

Professor Mazzucato and Guardian journalist Mike Carter discuss the economic forces causing so many people to feel marginalised and the need to rethink capitalism. Listen

Rethinking Capitalism on TV

Bloomberg

It’s long-term growth not the deficit

Bloomberg

Growth needs a redirection

Bloomberg

The EU has a problem