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14 min 50 sec
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The Future of Capitalism: Facing the New Anxieties

Explains why capitalism stopped sharing its gains after the postwar boom, and how practical, non-ideological policies for companies, families, struggling cities and global cooperation could make it fair and respected again.

Table of Content

If the economy you work in seems to reward a small group at the top while everyone else runs harder to stay in place, Paul Collier says you are reading the evidence correctly. In The Future of Capitalism, the Oxford development economist argues that capitalism stopped working for most people some time after the boom years that followed the Second World War. The damage now shows up as angry, divided politics.

His diagnosis is moral as much as economic: the system lost the sense of mutual obligation that once held it together. His cure is neither revolution nor a freer market. Collier calls it social maternalism. It means modest, practical policies, chosen case by case, that rebuild duties between companies and workers, parents and children, rich cities and struggling towns, strong nations and weak ones.

Along the way you meet a British company where staff share profits on the same terms as the boss, a project that won the trust of young parents, and German schools that turn trainees into respected craftspeople.

For a few decades, the rich paid huge taxes without complaint and rival parties built a health service together. Then the very success of that era created a new class whose values pulled the whole arrangement apart.

Left and right both offer complete theories of how to fix the economy. Collier thinks the theories themselves are part of the trouble, and his favorite counterexample is a city-state that escaped poverty without one.

Most employees have no say on the board and no stake in the success they help create. One major British company chose a different path decades ago, and it is still among the country’s most respected firms.

Two cousins born on the very same day ended up worlds apart. Collier uses their story to show where the state has been helping families badly, and what support that works looks like.

A lawyer in London and an equally able lawyer in Sheffield earn very different incomes for the same skill. Collier thinks that gap should be taxed, and that working people need something money cannot supply.

The alliances built after the Second World War have grown so large that many members ignore their own promises. Collier sketches a much smaller group of unlikely partners, and explains why their rivalry could be an advantage.

Collier’s book is finally an argument about obligation. The postwar boom worked because people felt they owed something to each other, and the system faltered when that feeling thinned into career pride for some and wounded dignity for others. Each of his proposals rebuilds a duty where it went missing: a company to its staff, a state to struggling parents, a booming capital to the towns it left behind, a rich nation to the neighbors of a war zone. None of it needs a new ideology. It needs modest, grounded action that fits the problem in front of it.

That gives you some fresh ways to look at your own world. When a political argument turns into a contest of slogans, ask what would actually work in this case, the way Lee Kuan Yew dealt with corruption in Singapore. When you judge a company, look at who shares its profits, with the John Lewis trust as a benchmark. When you hear about help for families or workers, notice whether it builds trust, as the Dundee Project did, or only checks up on people.

Collier and his cousin started life on the same day. A capitalism worth keeping is one where a single misfortune no longer pulls two such lives so far apart.

About this book

What is this book about?

After the Second World War, growth in the rich democracies reached people of every class. Today, Paul Collier argues, capitalism mostly rewards a small, highly educated elite, while workers without degrees feel ignored and politics splits into angry camps. He traces the decline to a moral change: the sense of shared duty that once held societies together faded into individual pride for some and lost dignity for others. Collier, an Oxford development economist, rejects both Marxism and Libertarianism as answers. He proposes social maternalism, a modest state that picks practical policies case by case and spreads moral responsibility to families, firms and communities. His examples include the John Lewis Partnership, where staff share profits on the same terms as the chief executive, the Dundee Project's support for young parents, German vocational schools and Lee Kuan Yew's pragmatic rule in Singapore. Readers get a clear account of why so many people feel the system no longer works for them, along with concrete ideas for taxing location-based wealth, rewarding ethical companies, keeping families together and building smaller, more effective international clubs.

Book Information

Rating:

Genre:

Economics, Politics & Current Affairs

Topics:

Ethics, Inequality, Public Policy

Publisher:

HarperCollins

Language:

English

Narrator:

Ethan

First published:

December 4, 2018

Pages:

247

Length:

14 min 50 sec

Get the book:

Amazon

Who it's for

  • Frustrated professionals

    Professionals frustrated that the economy seems to reward only those at the top and want a sober explanation.

  • Company founders and managers

    Founders and managers asking what duties a company owes its staff, customers and community.

  • Tired of partisan arguments

    Readers tired of left versus right arguments who want practical policy ideas instead.

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About the Author

Paul Collier

Paul Collier, born in 1949, is a British development economist and professor of economics and public policy at the University of Oxford's Blavatnik School of Government, where he also co-directs the International Growth Centre. From 1998 to 2003 he directed the World Bank's Development Research Group, and he was a senior adviser to the Blair Commission for Africa. His book The Bottom Billion won the Estoril Distinguished Book Prize, the Arthur Ross Book Award and the Lionel Gelber Prize. He also wrote Wars, Guns, and Votes and Exodus.

Ratings & Reviews

Ratings at a glance

3.9

Overall score based on 200 ratings.

What people think

Listeners consider the book well worth their time, appreciating its moral philosophy and depth, with one review noting how it examines overlooked concepts and uses frequent examples to support the narrative. Furthermore, the specialized subject matter earns praise, with one listener describing it as an immensely ambitious work. However, listeners are divided on how thought-provoking the book is, with one finding it too academic in tone. The writing style also draws mixed reactions, including one listener who found it difficult to follow.

Top reviews

Samart

This is a deeply ambitious work that attempts to bridge the gap between cold economic theory and moral philosophy. Collier argues that we’ve lost our sense of reciprocal obligation, replacing it with a hyper-individualism that serves only the elite. I found his breakdown of the "rifts" between booming metropolises and decaying provincial towns particularly haunting and accurate. While some sections get a bit esoteric, the narrative is driven by a genuine concern for the social fabric of our nations. It’s a refreshing change from the usual populist shouting matches we see in modern politics. He doesn't just complain; he offers pragmatic, if sometimes controversial, solutions for a more inclusive future.

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Elias

Finally got around to reading this after seeing it on several "best of" lists, and it certainly lived up to the hype for me. Collier manages to take taken-for-granted concepts like "identity" and "patriotism" and re-examine them through a pragmatic lens. He avoids the typical ideological traps, focusing instead on how we can rebuild the social contract between the skilled and the unskilled. I loved the emphasis on reciprocal obligations; it’s a concept that feels lost in our current era of rights-based discourse. The book is ambitious and asks the big questions that most economists are too afraid to touch. If you're tired of the usual political tribalism, give this a serious look.

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Sureerat

Look, this isn't your typical dry economics text. It’s a passionate, occasionally messy, but ultimately vital look at how we can save our society from tearing itself apart. Collier’s focus on "belonging" as a fundamental human need is something we’ve ignored for far too long in our pursuit of GDP growth. He challenges the reader to think about what we owe to each other, not just what we can get for ourselves. While I don't agree with every single policy proposal, the overarching message of pragmatism and mutual regard is incredibly powerful. This is a brave book that refuses to settle for easy answers or partisan slogans.

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Dream

The core of Collier’s argument centers on the idea that capitalism needs to be managed rather than defeated, which is a perspective we desperately need right now. He identifies three major rifts—spatial, class, and global—that are tearing our societies apart at the seams. I appreciated his personal anecdotes about growing up in Sheffield compared to his current life in Oxford; it grounded the high-level theory in something tangible. However, I did find his policy suggestions toward the end to be a bit scattershot. One minute we're talking about land value taxes, and the next, he's diving into the minutiae of foster care systems. It’s a thought-provoking read, even if the second half feels slightly disconnected from the first.

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Wipada

As someone who lives in a struggling post-industrial town, Collier's description of the "spatial rift" hit close to home. He perfectly captures the resentment felt by those outside the "metropolitan bubble" who see the elite thriving while their own communities decay. His ideas on taxing the unearned income of big-city workers are radical, but they make a weird kind of sense when you consider how land values skyrocket. I do think he oversimplifies some of the social issues, and his "social maternalism" concept might rub some people the wrong way. Still, it’s an immensely ambitious work that provides plenty of examples to drive the narrative forward. It’s well worth reading for the perspective alone.

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Supranee

Is capitalism truly broken, or just unmanaged? Collier argues the latter, and his case is mostly compelling. He moves away from the "greed is good" mantra and suggests that companies have a moral obligation to the communities that sustain them. I found his critique of modern individualism to be the strongest part of the book, even if it feels a bit academic at times. Some of the chapters are a bit dense, but the moral philosophy behind his arguments is consistently fascinating. It’s not a perfect book—some of the sections on family life felt a bit out of place—but it’s a necessary contribution to the debate.

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Takeshi

I wanted to love this, but the "two-book" problem mentioned by other reviewers is definitely real. The first half is a brilliant meditation on how we’ve eroded community trust, but the second half devolves into a laundry list of personal gripes. To be fair, Collier’s critique of the "economic man" is spot on and provides a necessary moral compass for future policy. Yet, his dismissal of certain modern concerns, like the climate crisis, makes the book feel strangely dated for something with "Future" in the title. It’s an interesting intellectual exercise, but I’m not sure how much of this is actually applicable in 2024. A decent read, but ultimately a bit frustrating.

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Sirinat

Picked this up expecting a standard economic treatise, but what I got was more of an ethical manifesto. The truth is, Collier is much better at diagnosing the sickness than he is at prescribing the cure. His analysis of how the "educated elite" have abandoned their less fortunate fellow citizens is piercing and deeply uncomfortable to read. However, when he gets into the weeds of policy—like his weird obsession with the French pension model—he loses me. The book oscillates between brilliant insight and confusing tangents that seem to have nothing to do with capitalism. It’s a mixed bag that requires a lot of patience to get through.

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Sven

Why does every Bill Gates recommendation feel like a massive homework assignment? This book was incredibly dense and, frankly, felt more like a collection of social science essays than a coherent plan for the future. I was expecting a sharp analysis of market mechanics, but instead, I got a lot of rambling about ethics and "social maternalism." Collier seems to spend more time attacking strawmen on the left and right than actually engaging with modern economic realities. The writing style is clunky and often difficult to follow, making it a real chore to finish. Unless you are a grad student in sociology, you might want to skip this one.

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Hugo

Not what I expected at all, and honestly, quite a disappointment given the author's reputation. Collier’s vision for the future seems to be a desperate attempt to return to the social norms of the 1950s, which is a bit ridiculous. He completely ignores the existential threat of climate change, which should be at the forefront of any discussion about the future of capitalism. For a book that claims to be forward-thinking, it feels remarkably stuck in the past with its focus on "traditional" family structures. The tone is condescending and elitist, as if he’s lecturing the masses from his ivory tower in Oxford. Save your money and read something that actually addresses the 21st century.

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Questions about this book

Collier argues that capitalism worked for most people after the Second World War because citizens felt a shared duty to each other. As a highly educated class grew more individualistic and less skilled workers lost respect, that ethic faded and politics became polarized. He proposes social maternalism: practical, non-ideological policies that restore obligations in companies, families, regions and international relations.

It is his alternative to social paternalism, where a small elite tells citizens what is good for them. A maternalist state chooses pragmatic policies, builds a patriotic community and makes sure people at every income level can earn respect. It shares moral responsibility with families and other groups, so support runs from childhood into productive adult life.

His main example is the John Lewis Partnership, a British company owned by a trust acting for its employees, where every worker receives the same share of profits as the chief executive. He also points to American Public Interest Companies, whose boards weigh public and commercial goals, and calls for closing the tax loopholes that global firms like Amazon have used.

He suggests taxing the gains of agglomeration, the extra income skilled people earn simply by working in big cities like London, to level the field with places like Sheffield. He also wants more vocational training on the German model, where students learn a trade with professional mentors and work placements, giving workers purpose as well as good pay.

It suits readers who sense that the economy no longer works for most people and want a reasoned explanation rather than a partisan one. Managers and founders will find a case for sharing company gains, policy-minded readers get concrete proposals on tax, families and training, and anyone following world affairs gets a view on why smaller international clubs could work better.

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