Political capitalism

Political capitalism ^[1] or Politically oriented capitalism is a concept introduced by Max Weber in his 1921 book Economy and Society to describe monetary profit-making through non-market means. ^{[2] [3]} In 2018, Holcombe describes political capitalism as an economic system in which the sharp distinction between states and markets is blurred. ^{[4] [5] [6] [7] [8]}

Robert Brenner and Dylan Riley have characterized the post-1990 economy of United States as political capitalism, where raw 'political power' rather than 'productive investment' is the "key determinant of rate of return". ^[9]

Filippa Chatzistavrou broadens the concept of political capitalism applied in the digital age by pushing further the idea of states and high tech markets being co-constitutive in order to include not only rent seeking, property rights’ issues and surplus extraction mechanisms, but also models of governance. ^[10]

Background

The definition of capitalism as an economic system based on monetary profit-making rather than a subsistence economy is shared by Max Weber and Fernand Braudel. ^{[11] [12]}

See also

• Crony capitalism
• Political capital
• State capitalism
• Revolving door (politics)

References

1. Holcombe, Randall (2015-03-20). "Political Capitalism as a Distinct Economic System". Master Resource. Retrieved 2025-04-21.
2. Vahabi, Mehrdad (2023). "Prologue". Destructive Coordination, Anfal and Islamic Political Capitalism. SpringerLink. p. XV. doi:10.1007/978-3-031-17674-6. ISBN   978-3-031-17673-9.
3. Krieger, Tim; Meierrieks, Daniel (2016-12-01). "Political capitalism: The interaction between income inequality, economic freedom and democracy" . European Journal of Political Economy. 45: 115–132. doi:10.1016/j.ejpoleco.2016.10.005. hdl: 10419/125138 . ISSN   0176-2680.
4. Holcombe, Randall G. (2018). Political Capitalism: How Economic and Political Power Is Made and Maintained. Cambridge Studies in Economics, Choice, and Society. Cambridge: Cambridge University Press. doi:10.1017/9781108637251. ISBN   978-1-108-47177-0.
5. "Book Review: Political Capitalism: How Economic and Political Power Is Made and Maintained, Randall G. Holcombe". Independent Institute. Retrieved 2025-04-21.
6. Cutsinger, Bryan P. (2019). "Review of Political capitalism: how economic and political power is made and maintained" . Public Choice. 180 (3/4): 501–503. doi:10.1007/s11127-019-00639-x. ISSN   0048-5829. JSTOR   48703940.
7. Cutsinger, Bryan P. (2019-09-01). "Randall G. Holcombe: Political capitalism: how economic and political power is made and maintained" . Public Choice. 180 (3): 501–503. doi:10.1007/s11127-019-00639-x. ISSN   1573-7101.
8. Yadav, Vikash (2023). Liberalism's Last Man. University of Chicago Press. doi:10.7208/chicago/9780226827360.001.0001. ISBN   978-0-226-82147-4.
9. Riley, Dylan; Brenner, Robert (2022-12-21). "Seven Theses on American Politics". New Left Review. 6: 5–27.
10. Chatzistavrou, Filippa (2024-12-20). "Political capitalism in the digital era: reconstructing the capital– state relation". Frontiers in Political Science. 6 (138). doi: 10.3389/fpos.2024.1509376 .
11. Vahabi, Mehrdad (2023). "Political Capitalism, its Varieties". Destructive Coordination, Anfal and Islamic Political Capitalism. SpringerLink. p. 105 - 140. doi:10.1007/978-3-031-17674-6. ISBN   978-3-031-17673-9.
12. Schwartz, Herman (2012-08-01). "Political Capitalism and the Rise of Sovereign Wealth Funds" . Globalizations. 9 (4): 517–530. Bibcode:2012Glob....9..517S. doi:10.1080/14747731.2012.699924. ISSN   1474-7731.