Cover: The Crisis of Capitalist Democracy, from Harvard University PressCover: The Crisis of Capitalist Democracy in PAPERBACK

The Crisis of Capitalist Democracy

Following the timely and well-received A Failure of Capitalism, Richard Posner steps back to take a longer view of the continuing crisis of democratic capitalism as the American and world economies crawl gradually back from the depths to which they had fallen in the autumn of 2008 and the winter of 2009.

By means of a lucid narrative of the crisis and a series of analytical chapters pinpointing critical issues of economic collapse and gradual recovery, Posner helps non-technical readers understand business-cycle and financial economics, and financial and governmental institutions, practices, and transactions, while maintaining a neutrality impossible for persons professionally committed to one theory or another. He calls for fresh thinking about the business cycle that would build on the original ideas of Keynes. Central to these ideas is that of uncertainty as opposed to risk. Risk can be quantified and measured. Uncertainty cannot, and in this lies the inherent instability of a capitalist economy.

As we emerge from the financial earthquake, a deficit aftershock rumbles. It is in reference to that potential aftershock, as well as to the government’s stumbling efforts at financial regulatory reform, that Posner raises the question of the adequacy of our democratic institutions to the economic challenges heightened by the greatest economic crisis since the Great Depression. The crisis and the government’s energetic response to it have enormously increased the national debt at the same time that structural defects in the American political system may make it impossible to pay down the debt by any means other than inflation or devaluation.

Awards & Accolades

  • A Financial Times Financial Book of the Year, 2010
Why Do We Still Have the Electoral College?, by Alexander Keyssar, from Harvard University Press

Recent News

Black lives matter. Black voices matter. A statement from HUP »

From Our Blog

Jacket, Bored, Lonely, Angry, Stupid: Changing Feelings about Technology, from the Telegraph to Twitter, by Luke Fernandez and Susan J. Matt, from Harvard University Press

Technology, Biology, Chronology

Fears and anxieties about the latest technologies are nothing new, say Luke Fernandez and Susan J. Matt, authors of Bored, Lonely, Angry, Stupid: Changing Feelings about Technology, from the Telegraph to Twitter. But neither is the fact that they often provide new ways for us to connect and socialize. Mark Twain is rumored to have said “History doesn’t repeat itself, but it often rhymes.” Of late, much press has been spent on uncovering those rhymes, focusing on the similarities between the current epidemic and past ones. These stories underscore the lesson that progress hasn't allowed us to escape the suffering of earlier