TOP DRAWER BOOK REVIEW
by
HL Carpenter

 

The Soul of Capitalism
by William Greider
366 pages; hardcover; $28.00
Simon & Schuster, New York, 2003

American capitalism. Whether you love it or hate it, our economic system of private property ownership makes this country the richest in the world. But even while you’re enjoying that prosperity, do you have the sneaking suspicion that capitalism encourages societal irresponsibility in the pursuit of profits?

That exactly what author William Greider, who was a reporter for 40 years, thinks. He points out that the current system for measuring corporate wealth has no mechanism for valuing ‘soft’ costs, such as environmental damage or the value of human knowledge. And the soul mentioned in the book’s title? Mr. Greider says, “American capitalism doesn’t appear to have one.”

The idea that business falls short in matching the values of society in general is well rooted in history, as the author admits. The Soul of Capitalism compares the modern workplace to 15th century feudalism, but the theme recurs in other examples that he doesn’t mention. For instance, in the 17th century, Sir Edward Coke pronounced, “Corporations have no souls.” And in 1945, The Age of Jackson, “Corporations have neither bodies to be kicked nor souls to be damned.”

Despite - or perhaps because of - this long history, Mr. Greider thinks the time is ripe for reform. He argues that in our modern, abundantly endowed society, ‘ordinary people’ (a group that does not seem to include him) have the power to make positive changes. Further, those changes must be made to both the capitalistic business world and to the government that attempts to regulate it.

A change of this scale will take time, perhaps even into the next generation. Since he takes the rather elitist view that most of us have no idea how our economy works, Mr. Greider suggests universities begin teaching students to see the big picture. Thus armed, we can venture into a new future of capitalism, one in which business and society share mutual values.

His vision may resonate as you hear and read seemingly daily news reports of corporate greed and misdeeds. But whether you’ll agree that business can – or should - become ‘warm and fuzzy’ given the benefits of the present system is a question The Soul of Capitalism can’t answer.

 

Review originally published September 2003.