Understanding Capitalism: Competition, Command, and Change

by Samuel Bowles, Richard Cluff Edwards, Frank Roosevelt

Understanding Capitalism: Competition, Command, and Change, Third Edition, is an introduction to economics that explains how capitalism works, why it sometimes does not work as well as we would like it to, and how over time it not only changes but also revolutionizes the world around us. The "three-dimensional approach" of the text focuses on competition in markets; command in firms, governments, and international relations; and change as a permanent feature of a capitalist economy driven by technical innovation and conflict over the distribution of income.

The book covers the standard topics of supply and demand, market competition, imperfect competition, aggregate demand, inflation, and unemployment. It emphasizes the extraordinary dynamism and material productivity of the capitalist economy; the psychological foundations of human behavior; the logic and limitations of Adam Smith's invisible hand; technical change and the new information-based economy; global economic integration and its impact on national economies; the impact of economic activity on the environment; and inequality both within and among nations. In addition, it provides a critical evaluation of the tenets of neoclassical economics, a clear introduction to contract theory, and material drawn from new research in behavioral, institutional, and information economics.

Understanding Capitalism , Third Edition, is ideal for undergraduate courses in economics and political economy. An Instructor's Manual is available to adopters.

FEATURES OF THE THIRD EDITION



·Offers a new chapter on the behavioral foundations of economics, showing that the selfishness of the "economic man" leaves out the important role of other social motives and how individual tastes and values evolve in response to experiences


·Includes a new chapter that examines how economic success (and poverty) are passed on from parents to children and also looks at the increasing inequality of income and wealth along lines of race and gender


·Presents a completely revised and expanded treatment of the revolutionary changes that have been associated with capitalism over the past three centuries


·Provides boxed treatments of issues that can serve as the basis of classroom discussions


·Defines important terms in the margins throughout the text


·Contains a section entitled "Sources of Economic Information" that helps readers locate relevant outside data, both in print and online

Genres: Economics, Nonfiction

608 pages, Paperback

First published February 28, 1985

About the author

Librarian Note: There is more than one author by this name in the Goodreads data base.

Samuel Bowles is Research Professor and Director of the Behavioral Sciences Program at the Santa Fe Institute and Professor of Economics at the University of Siena. He is coauthor of Notes and Problems in Microeconomic Theory (North Holland Texts in Mathematical Economics) and Schooling in Capitalist America (Basic Books), and has published articles, most recently, in the American Economic Review, Nature, the Quarterly Journal of Economics, the Economic Journal, and the Journal of Theoretical Biology.

Reviews

[Brian Setzler · Rating 5 out of 5]

This is an economic text and my 5-star rating is based on that fact.

This book was used in my economics coursework while earning an MBA in Sustainable Business. Having already studied Econ fairly extensively while earning a BA in business, this book opened my eyes to how our system actually functions.

The book combines both micro and marco economics.

The Preface says "[This book] is an introduction to economics that explains how capitalism works, why it sometimes doesn't work as well as we'd like, and how over time it not only change its own functioning but also revolutionizes the world around us. The book does not assume that the reader has any prior knowledge of economics."

I have an undergrad in business, an MBA in Sustainable Business, I am a business owner, a business advisor, a certified public accountant, and I have securities licenses and insurance licenses. Given all that, I can safely say I know a bit about business and economics. This book taught me a ton I didn't know.

I highly recommend this book.

[George Malandrakis · Rating 5 out of 5]

Among the best books I've ever read. Though a significant part of it consists of detailed analysis of socioeconomical phenomena that any alert person with an average brain understands without having to read a book, it is quite different to see common sense and intuition supported by statistics, diagrams, real-life examples, and even mathematical formalizations, than mere arguments.

An equally significant part of the book analyses phenomena that require a basic comprehension of economics and perhaps some more technical knowledge, which makes this book even more worth reading.

The authors are rather objective, pointing out many of the weaknesses and problems of capitalism along with its' benefits, while other academics tend to stick more to the latter.

If all voters had read this book our world would be a better place

[Carl Leibniz · Rating 5 out of 5]

Covers pretty much everything you need to know about capitalism. Just to put things into perspective, consider questions like: why capitalism works and sometimes it fails? Why is capitalism a fundamentally unfair economic system? Emphasizes the common sense idea that capitalism is all about profit making, it could not care less about interests of individuals. There are economic formulas here and there just to tie the ideas with the mathematics, but depending on the course you are taking they might or might not be used.

[Amelia · Rating 3 out of 5]

Who likes economics textbooks? So this book made political economists out of a bunch of touchy, feely granola crunching environmentalists and social activists. If you ever find a reason to understand the science of economics and you give a shit about the consequences of economic policy on social justice and the environment- here you go.

[Stetson · Rating 3 out of 5]

This was my Econ 101 textbook. From what I can recall it seemed fine, though it was particularly interested in pushing market failure examples that were overly simplistic. It was good for basic supply-demand analysis, which is the basic thing people should takeaway from that sort of class.

[Pavlos.Karagrigoris · Rating 4 out of 5]

A great introduction to Political Economy. It’s approachable to everyone regardless of academic background without shying away from complex notions and subjects. It covers all the basics of Economic thought and explains everything in a succinct manner. No background in maths is needed to understand the formulas as long as you are willing to spend the appropriate amount of time studying. Every chapter covers the basics without dragging on for to long or omitting important information. The writers have a slight social democratic bias but nothing out of the ordinary that negates the scientific merit of their work. Would recommend to everyone as an introduction to economics.

[Mairh Kouloglou · Rating 4 out of 5]

A very good book for everyone who is new to economics and wants to understand the basics of how capitalism works as well as how the economy affects politics and society. I thought it was surprisingly objective and unbiased even though it appears that it has been written by progressive, left-leaning authors.