THE HEDGEHOG REVIEW (FALL 2023): MARKETS AND THE GOOD – Thinking beyond the tyranny of economics; The Myth of the Friedman Doctrine; Hamilton’s System; How We Obscure the Common Plight of Workers; Profit, Power, and Purpose and more…

Introduction: Markets and the Good

Thinking beyond the tyranny of economics.

By Jay Tolson, editor of The Hedgehog Review

Only three decades ago, amid what was hailed as a new “Springtime of Nations,” post–Cold War exuberance fueled widespread confidence in the triumphant spread of liberal democracy and free-market capitalism to all parts of the globe, including those few remaining redoubts of “truly existing socialism,” with their fusty politburos and dysfunctional command economies. The brutal 1989 Tiananmen Square crackdown notwithstanding, even the People’s Republic of China was thought to be on the road to democracy thanks to its earlier adoption of a hybrid form of capitalism with “Chinese characteristics.” Though not alone in predicting that the opening up of China’s economy would lead to the liberalization of its politics and society, the editorial pages of the Wall Street Journal were among the louder cheerleaders for that optimistic line of economic determinism. 

The Myth of the Friedman Doctrine

And the stubborn persistence of a powerful idea.

By Kyle Edward Williams, senior editor of The Hedgehog Review and the author of a forthcoming book on the history of American business, Taming the Octopus: The Long Battle for the Soul of the Corporation. 

Americans were once deeply worried about the danger posed by powerful corporations. They may be useful, wrote James Madison to a friend in 1827, “but they are at best a necessary evil only.”¹ This was an old republican intuition: Concentrated power in whatever form threatened the body politic. In recent years, however, business leaders have come to believe that what Madison considered a “necessary evil” is actually the last great institution capable of making the world a better place. For Silicon Valley entrepreneurs no less than Fortune 500 CEOs, the bottom line is out, and amelioration is in. Call it conscious capitalism. Or corporate social responsibility or environmental, social, and corporate governance (ESG) investing. Many consumers, regulators, and activists expect big-business executives to act like responsible citizens and steer their firms accordingly—maybe more now than ever before. Even 92 percent of executives in a 2022 survey agreed that corporate leaders should take a stand on social issues.²

Profit, Power, and Purpose

The greatest challenge presented by modern corporations, small as well as large, involves purpose.

Michael Lind

The New Prince

Deneen’s politics of resentment primarily seeks to seize power from political enemies.

Andrew Lynn