The best books about the modern capitalist economy from a scholar

The Great Transformation, in which Karl Polanyi explores “the political and economic origins of our time,” is arguably the most important history of the economy ever written. 

Polanyi published his study during the dark times of the twentieth century in an attempt to trace the origins of modern fascism (a task that has lost none of its relevance in the twenty-first century). He located those origins in the industrial transformation of land, labor, and money – the foundations of social existence – into full-fledged commodities, that is to say, into ephemeral vehicles of profit. 

The resulting market society, touted by liberals as the source of universal freedom and equality, brought personal and communal disaster for those less advantageously positioned to compete in the new economy. The price, Polanyi argues, has been catastrophic.

Charles Beard’s Economic Interpretation of the Constitution of the United States is a passionate, and passionately polemical, work of history devoted to the circumstances in which the young American republic, founded in 1776, was overthrown a decade later by a new, federal system of government. 

The driving force for this counter-revolution, according to Beard, himself an important figure in early twentieth-century progressive politics, was the anxious attempt of “our most considerate and virtuous citizens,” in the words of founding father James Madison, to protect their property – and, most crucially, their control over the money supply – from populist insurgents determined to democratize control over, both, the polity and the economy.

Eugene Genovese was the most brilliant of a talented generation of scholars whose studies of New World slavery have since been largely deposed by a far more simplistic, black-and-white (pun intended) version of the same. 

Genovese’s magnum opus, Roll, Jordan, Roll, offers an unsparing view of a reality in which neither master nor slave “could express the simplest human feelings without reference to the other,” an especially intimate form of class rule which struck a compelling contrast to the anonymity of the wage nexus increasingly prevalent in the Northern states. 

These dialectics played out in a continual, if asymmetric, power struggle at the heart of plantation life, where the economy could not be separated out from racial, sexual, religious, and ideological experience, again, in stark contrast to the liberal division of social life into autonomous spheres of existence.

Jeffrey Sklansky is that rare academic with a writer’s literary imagination, which serves the reader well in engaging The Soul’s Economy, a riveting and dense intellectual history of the market’s emergence as the organizing principle of not only economic life, but of a distinctly new moral sensibility between 1820 and 1920. 

Sklansky explores this far-reaching turn of events through a series of dedicated readings of America’s leading philosophers and pundits of the times, ranging from Ralph Waldo Emerson to John Dewey, who collectively recast the pursuit of wealth into an ethic of personal rectitude and even the source of society’s general welfare.

Maurizzio Lazaratto is a critic of contemporary capitalism. 

His view of the subject finds powerful expression in Making of the Indebted Man, a study that tracks the development of a neo-liberal, or financialized, global economy organized around a new form of exploitation – no longer the extraction of surplus value from industrial labor, but the ever-mounting debt assumed by consumers seeking to maintain their standard of living while wages keep falling. 

The accruing debts serve as an effective means for disciplining the population while at once becoming an immensely lucrative source of profit for banks and other corporations that buy and sell them on the world’s financial markets.