Jacobs Michael - Rethinking Capitalism

Edited by

Michael Jacobs and Mariana Mazzucato

This edition first published 2016
2016 The Political Quarterly Publishing Co. Ltd except for editorial material

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First published in 2016 by John Wiley & Sons

Library of Congress Cataloging-in-Publication Data

Names: Jacobs, Michael, 1960- editor. | Mazzucato, Mariana, 1968- editor.

Title: Rethinking capitalism : economics and policy for sustainable and inclusive growth / edited by Michael Jacobs and Mariana Mazzucato.

Description: Chichester, West Sussex, United Kingdom : Wiley-Blackwell, in association with The Political Quarterly, 2016. | Includes bibliographical references.

Identifiers: LCCN 2016024733 | ISBN 9781119120957 (pbk. : alk. paper)

Subjects: LCSH: Capitalism. | Sustainable development. | Economic development--Environmental aspects.

Classification: LCC HB501 .R4295 2016 | DDC 330.12/2--dc23 LC record available at https://lccn.loc.gov/2016024733

For

Calum, Natasha and Lucienne

and

Leon, Micol, Luce and Sofi

WE ARE indebted to Daniele Girardi, Caetano Penna, Frank Brouwer and Jeff Masters for their invaluable editorial work on key chapters of this book.

We are very grateful to Joni Lovenduski and Deborah Mabbett at The Political Quarterly for their support, and for the great help provided by Emma Anderson. Thanks to Sandra Fardon Fox, Lena Hawkswood and Rachel Smith at Wiley Blackwell, and to Kristy Barker and Sarah Price for copy editing and proof reading.

Mariana Mazzucato acknowledges support from a research grant from the Institute for New Economic Thinking (grant no. 5474) and from the European Communitys H2020-Euro-Society-2014 call on Overcoming the crisis: new ideas, strategies and governance structures for Europe (ISIGrowth grant no. 649186).

1. 2. The Failure of Austerity: Rethinking Fiscal Policy
2. 7. Investment-led Growth: A Solution to the European Crisis

1. 1. Rethinking Capitalism: An Introduction
2. 2. The Failure of Austerity: Rethinking Fiscal Policy
3. 4. The Costs of Short-termism
4. 6. Innovation, the State and Patient Capital
5. 7. Investment-led Growth: A Solution to the European Crisis
6. 8. Inequality and Economic Growth
7. 11. Capitalism, Technology and a Green Global Golden Age: The Role of History in Helping to Shape the Future

Michael Jacobs is Visiting Professor in the School of Public Policy and Department of Political Science at University College London. An environmental economist and political theorist, his work has focused on the political economy of environmental change. His books include The Green Economy: Environment, Sustainable Development and the Politics of the Future (Pluto Press, 1991), Greening the Millennium? The New Politics of the Environment (ed., Blackwell, 1997), The Politics of the Real World (Earthscan, 1996) and Paying for Progress: A New Politics of Tax for Public Spending (Fabian Society, 2000). From 2004 to 2010 he was a Special Adviser to the UK Prime Minister, responsible for domestic and international policy on energy and climate change, and before that (20042007) a member of the Council of Economic Advisers at the Treasury. He has previously been General Secretary of the Fabian Society, Co-Editor of The Political Quarterly and a research fellow at Lancaster University and the London School of Economics.

Mariana Mazzucato is the RM Phillips Professor in the Economics of Innovation at SPRU at the University of Sussex. She has held academic positions at the University of Denver, London Business School, Open University and Bocconi University. Her book The Entrepreneurial State: Debunking Public vs. Private Sector Myths (Anthem, 2013) was on the Financial Times 2013 Books of the Year list. She is winner of the 2014 New Statesman SPERI Prize in Political Economy and the 2015 Hans-Matthfer-Preis, and in 2013 the New Republic called her one of the three most important thinkers about innovation. She is an economic advisor to the Scottish government and the Labour Party, and is a member of the World Economic Forums Global Agenda Council on the Economics of Innovation. Her current research is funded by the European Commission, the Institute for New Economic Thinking (INET), the Ford Foundation, NASA and the Brazilian Ministry for Science and Technology.

Stephanie Kelton is Professor of Economics at the University of Missouri-Kansas City. Her research expertise is in Federal Reserve operations, fiscal policy, social security, international finance and employment. She is best known for her contributions to the literature on Modern Monetary Theory. Her book,