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Political capitalism

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Concept introduced by Max Weber

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Political capitalism^[1] orPolitically oriented capitalism is a concept introduced byMax Weber in his 1921 bookEconomy and Society to describe monetary profit-making through non-market means.^[2]^[3] In 2018,Holcombe describes political capitalism as aneconomic system in which the sharp distinction betweenstates andmarkets is blurred.^[4]^[5]^[6]^[7]^[8]

Robert Brenner and Dylan Riley have characterized the post-1990 economy ofUnited States as political capitalism, where raw 'political power' rather than 'productive investment' is the "key determinant ofrate of return".^[9]

Filippa Chatzistavrou broadens the concept of political capitalism applied in thedigital age by pushing further the idea of states and high tech markets being co-constitutive in order to include not onlyrent seeking, property rights' issues and surplus extraction mechanisms, but also models ofgovernance.^[10]

Background

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The definition ofcapitalism as an economic system based onmonetary profit-making rather than asubsistence economy is shared by Max Weber andFernand Braudel.^[11]^[12]

References

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^Holcombe, Randall (2015-03-20)."Political Capitalism as a Distinct Economic System".Master Resource. Retrieved2025-04-21.
^Vahabi, Mehrdad (2023). "Prologue".Destructive Coordination, Anfal and Islamic Political Capitalism. SpringerLink. p. XV.doi:10.1007/978-3-031-17674-6.ISBN 978-3-031-17673-9.Archived from the original on 2025-03-08. Retrieved2025-04-21.
^Krieger, Tim; Meierrieks, Daniel (2016-12-01)."Political capitalism: The interaction between income inequality, economic freedom and democracy".European Journal of Political Economy.45:115–132.doi:10.1016/j.ejpoleco.2016.10.005.hdl:10419/125138.ISSN 0176-2680.Archived from the original on 2025-11-12. Retrieved2025-04-21.
^Holcombe, Randall G. (2018).Political Capitalism: How Economic and Political Power Is Made and Maintained. Cambridge Studies in Economics, Choice, and Society. Cambridge: Cambridge University Press.doi:10.1017/9781108637251.ISBN 978-1-108-47177-0.Archived from the original on 2025-05-05. Retrieved2025-04-21.
^"Book Review: Political Capitalism: How Economic and Political Power Is Made and Maintained, Randall G. Holcombe".Independent Institute.Archived from the original on 2025-05-05. Retrieved2025-04-21.
^Cutsinger, Bryan P. (2019). "Review of Political capitalism: how economic and political power is made and maintained".Public Choice.180 (3/4):501–503.doi:10.1007/s11127-019-00639-x.ISSN 0048-5829.JSTOR 48703940.
^Cutsinger, Bryan P. (2019-09-01). "Randall G. Holcombe: Political capitalism: how economic and political power is made and maintained".Public Choice.180 (3):501–503.doi:10.1007/s11127-019-00639-x.ISSN 1573-7101.
^Yadav, Vikash (2023).Liberalism's Last Man. University of Chicago Press.doi:10.7208/chicago/9780226827360.001.0001.ISBN 978-0-226-82147-4.Archived from the original on 2025-05-03. Retrieved2025-04-21.
^Riley, Dylan; Brenner, Robert (2022-12-21)."Seven Theses on American Politics".New Left Review.6:5–27.Archived from the original on 2025-04-13. Retrieved2025-04-21.
^Chatzistavrou, Filippa (2024-12-20)."Political capitalism in the digital era: reconstructing the capital– state relation".Frontiers in Political Science.6 (138).doi:10.3389/fpos.2024.1509376.
^Vahabi, Mehrdad (2023). "Political Capitalism, its Varieties".Destructive Coordination, Anfal and Islamic Political Capitalism. SpringerLink. p. 105–140.doi:10.1007/978-3-031-17674-6.ISBN 978-3-031-17673-9.
^Schwartz, Herman (2012-08-01). "Political Capitalism and the Rise of Sovereign Wealth Funds".Globalizations.9 (4):517–530.Bibcode:2012Glob....9..517S.doi:10.1080/14747731.2012.699924.ISSN 1474-7731.

v t e Max Weber
Bibliography
Books	The History of Commercial Partnerships in the Middle Ages (1889) Roman Agrarian History and Its Significance for Public and Private Law (1891) Condition of Farm Labour in Eastern Germany (1892) The Stock Exchange (1896) The Protestant Ethic and the Spirit of Capitalism (1905) The Economic Ethics of the World Religions The Religion of China (1915) The Religion of India (1916) Ancient Judaism (1921) Economy and Society (1921–1922)
Essays	"The 'Objectivity' of Knowledge in Social Science and Social Policy" (1904) "The Protestant Sects and the Spirit of Capitalism" (1904) "The Rejection and the Meaning of the World" (1916)
Lectures	"Science as a Vocation" (1917) "Politics as a Vocation" (1919) General Economic History (1923)
Concepts	Bureaucracy Charisma Disenchantment Ethic of ultimate ends Ideal type Inner-worldly asceticism Iron cage Life chances Methodological individualism Monopoly on violence Patrimonialism Political capitalism Protestant work ethic Rationalisation Social action Affectional Traditional Instrumental Value-rational Three-component theory of stratification Tripartite classification of authority Charismatic Rational-legal Traditional Value-freedom Verstehen
People	Max Weber Sr. (father) Alfred Weber (brother) Marianne Weber (wife) Else von Richthofen (mistress)
Related	Verein für Socialpolitik Archiv für Sozialwissenschaft und Sozialpolitik German Sociological Association German Democratic Party Max Weber Center for Advanced Cultural and Social Studies Max Weber Foundation

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