Journal of Economics

, Volume 128, Issue 2, pp 193–200 | Cite as

Torben Iversen and David Soskice: Democracy and prosperity: reinventing capitalism through a turbulent century

Princeton University Press, 2019, Hardcover, £29.95
  • Robert BoyerEmail author
Book Review

Are modern doctors Pangloss right?

Since the early 2010s many social scientists have converged towards a shared if not totally common understanding of the transformations of contemporary societies. It is based upon three pillars.
  • First, the internationalization of economies and the high capital mobility have caused a reduction in the bargaining power of labor and they are the source of an open conflict between capitalism, national sovereignty and democracy (Rodrik 2012).

  • Second, the fact that the rate of return on capital is now far superior to the growth rate implies a widening of income inequality in favor of a new class of rentiers (Piketty 2014).

  • Third, these two processes mean an emerging open conflict between economic dynamism and social justice, finally between a transnational capitalism and the political legitimacy of democratic principles, mainly organized at the National State level (Streeck 2017).

An alternative paradigm for the political economy of contemporary capitalism


JEL Classification

A13 I25 O11 O33 P16 



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Copyright information

© Springer-Verlag GmbH Austria, part of Springer Nature 2019

Authors and Affiliations

  1. 1.Institute of the AmericasVanvesFrance

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