Is a business a community, or just a bundle of contracts between self-interested strangers? And is "the common good" anything more than a pious slogan when it comes to the economy?
In this conversation, Andrew Petiprin and Robert Mixa are joined by Mark Hoipkemier, author of The Price of the Common Good: Markets, Corporations, and Political Economy (University of Notre Dame Press), to talk about what's really at stake in market economies beyond self-interest and profit.
Much of the book is a sustained argument with the Chicago School of law and economics — the tradition running from Milton Friedman through Coase, Posner, and the theory of the firm as a "nexus of contracts." On that view, a firm looks less like a community than like a market: a set of bargains struck between individuals who each have their own ends. Hoipkemier thinks that picture is simply wrong. An exclusive focus on individuals and contracts, he argues, has left many economists "blind in one eye" — able to see individuals clearly enough, but unable to notice the intertwined common projects we actually inhabit, in our dominant economic institutions no less than in private associations or politics proper.
Part of what has made the Chicago School so durable is that its critics — stakeholder theorists on the left, localists and populists on the right — have struggled to offer an alternative with comparable conceptual elegance and explanatory power. This book is an attempt to supply one.
Hoipkemier's central claim is striking: not that economic institutions ought to embody communal purposes, but that they already do. Our economic institutions pull citizens, often unwittingly, into shared projects that answer the deepest political questions of how we live together — and who we become in the process. To describe those projects he recovers the classical idiom of the common good and puts it to work on contemporary cases like Uber, corporate law, and globalized auto manufacturing.
- The Chicago-school theory of the firm as a market
- What Hayek got right about spontaneous order and price signals, and what his framework misses about the shared political vision markets themselves depend on
- The route from Hayek through Polanyi back to Genovesi, and what the Neapolitan tradition offers that the Anglo-American one doesn't
- Whether the goal is a "second language" — a public grammar for talking about common goods — rather than a wholesale replacement for economics
- How reducing business and trade to narrow money terms obscures the goods they serve, and feeds the social breakdown typical of late capitalism
- The history of the corporation and markets
Mark Hoipkemier teaches in the Business, Ethics, and Society program at the University of Notre Dame's Mendoza College of Business, and previously in the Politics, Philosophy, and Economics program at the University of Navarra.
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