At a time when issues of income inequality, redistribution, populism, terrorism are increasingly pinned on states’ inability to assume full control of globalising forces and capitalism’s failure to provide for more equitable growth, Torben Iversen and David Soskice’s (2019) latest book is a welcome addition to the political economy literature.
The two eminent scholars suggest that capitalism is very much locked-in to the democratic principles of advanced economies. Iversen and Soskice gave compelling argument on why it is in the interest of advanced democracies to ensure that capitalism thrives despite the threats of populism, slower growth and rising inequality. It also argues that major constituents in advanced democracies economies have a direct interest to ensure that capitalism continue to thrive. The book argues that leaders in such democracies who fail to advance the workings of capitalism and fail to ensure continued growth to the rising middle class and aspirational families will be punished.
The authors swear that they are no apologist for capitalism or democracy. Their persuasive arguments for capitalism and democracy however are backed by cogent historical facts and well-formed explanations.
This book by the Princeton University Press serves to argue that capitalism and democracy are far from incompatible; rather both are locked into serving mutual goals of advancing state’s development .
This book is a must read for those seeking explanations to the turbulence of our times and on how best to put into perspective the issues of slow growth, populism and rising income inequality.