Individualism, Collectivism, and the Future of Capitalism

Teodor Sedlarski
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Teodor Sedlarski: Sofia University St. Kliment Ohridski, Bulgaria

Ikonomiceski i Sotsialni Alternativi, 2022, issue 4, 126-153

Abstract: This article offers a brief overview of the main ideas in the book “The Future of Capitalism†by American economist Lester Thurow related to the discussion in economic literature on the role of cul­ture, and more specifically to the dimension of indi­vidualism–collectivism1. According to the author, the long-term existence of the current socio-economic system is threatened by the incompatibility of modern social market relations and technological connec­tions with basic features of human nature. Individuals and their preferences are largely products of society and social influences, and to function properly they require unifying worldview systems. The problem with capitalism and the concept of market-regulated social order, as Thurow sees it, is that they are not unifying, but rather ‘process’ ideologies regarding the efficacy of human exchange. With the ubiquitous spread of individualistic mental models, it is getting harder to formulate concepts of common good or collective goals to which all members of society are expected to contribute. In the absence of a well-functioning collectivistic social organization, how­ever, everyone is motivated to “free ride†, i.e., to reap the benefits provided by others at an earlier historical stage without investing own efforts in maintaining the system that made these benefits possible.

Keywords: individualism; collectivism; capitalism; institutions; shared mental models; ideologies; culture (search for similar items in EconPapers)
JEL-codes: B52 F54 O43 P16 (search for similar items in EconPapers)
Date: 2022
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