FROM THE REVIEW: Few books offer both a compelling critique of mainstream economics and a bold alternative vision for political economy. But in Capital as Power, Jonathan Nitzan and Shimshon Bichler have the audacity to do just that [.] Capital as Power represents everything that I look for in a paradigm-shifting work of science. It presents a compelling critique of existing orthodoxies, offers an alternative approach to political economy, and grounds this approach in innovative empirical research. Read Capital as Power and have your worldview forever changed.
What is the unit of analysis in economics? The prevailing orthodoxy in mainstream economic theory is that the individual is the 'ultimate' unit of analysis. The implicit goal of mainstream economics is to root macro-level social structure in the micro-level actions of individuals. But there is a simple problem with this approach: our knowledge of human behavior is hopelessly inadequate for the task at hand. Faced with real-world complexities, economists are forced to make bold (and seldom tested) assumptions about human behavior in order to make models tractable. The result is theory that has little to do with the real world. This dissertation investigates an alternative approach to economics that I call 'economics from the top down'. This approach begins with the following question: what happens when we take the analytical focus off individuals and put it into social hierarchy? The effect of this analytical shift is that we are forced to deal with the realities of concentrated power. The focus on hierarchy leads to some surprising discoveries. First, I find evidence that hierarchical organization has a biophysical basis. I show that institution size (firms and governments) is strongly correlated with rates of energy consumption, and that the growth of institutions can be interpreted as the growth of social hierarchy. Second, I find that hierarchy plays an important role in shaping income and income distribution. I find that income scales strongly with hierarchical power (defined as the number of subordinates under one's control), and that hierarchical power affects income more strongly than any other factor measured. Lastly, using an empirically informed model of the hierarchical structure of US firms, I find that hierarchy plays a dominant role in shaping the income distribution tail. These results hint that hierarchy can be used to unify the study of economic growth (understood in biophysical terms) and income distribution. I conclude by making the first prediction of how the concentration of hierarchical power should relate to the growth of energy consumption. This prediction sheds new light on the origin of inequality. While this 'top down' approach to economics is in its infancy, the results are encouraging. Focusing on hierarchy gives fresh insight into many of the important questions facing society-insight that cannot be obtained by focusing on individuals. ; Unpublished PhD Dissertation, Graduate Program in Environmental Studies, York University, Toronto, 2018
There is no consensus, in political economy, about the exact relationship between the biophysical and the pecuniary spheres. This paper enters into the debate by asking the following question: how can a biophysical approach to political economy be used to gain insight into the complex interrelationship between the biophysical sphere of economic activity and its monetary image? After reviewing and critiquing land, labour, utlitarian, and energy theories of value, this paper abandons the search for a direct, causal connection (between the biophysical and the pecuniary) in favor of an impredicative, co-evolutionary approach. Using a synthesis of the work of Giampietro & Mayumi and Nitzan & Bichler, an empirical investigation is conducted that looks for linkages between monetary indicators, the inter-sectoral movement of human activity, and increases in energy consumption. Although the findings are complex, dynamic linkages between the biophysical and pecuniary spheres are consistently found.
In a series of essays published in 2013 and 2014 on capitaspower.com, political economist Tim Di Muzio explored the concept of 'sabotage' as it applies to capitalist power. I recently rediscovered these essays and was so impressed by them that I have reposted them here as a single piece. About the author: Tim Di Muzio is a researcher at the University of Wollongong. He is the author of numerous books, including Debt as power, Carbon capitalism, and The 1% and the Rest of us.
Existing theories of capitalism, mainstream as well as heterodox, view capitalism as a mode of production and consumption. The purpose of this ongoing speaker series is to interrogate capitalism as a mode of power. The presentations offer a power theory of personal income distribution (Blair Fix, 2:30-5:30pm, October 17, 2017), explore the power to externalize (DT Cochrane, 2:30-5:30pm, October 24, 2017), and interrogate the link between the power of mass culture and corporate profit (James McMahon, 2:30-5:30pm, November 1, 2017). The presentations are organized by the Forum on Capital as Power and sponsored by the York Department of Politics. Refreshments will be served and all are welcome. WHERE: Verney Room, 674 South Ross, Keele Campus of York University WHEN: October 17; October 24, November 1, 2017
Existing theories of capitalism, mainstream as well as heterodox, view capitalism as a mode of production and consumption. This speaker series interrogates capitalism as a mode of power. The five presentations deal with the past, present and future of the CasP project (Bichler & Nitzan), the historical connection between economic growth and the formation of social hierarchy (Fix), the role of blockbuster cinema in reducing Hollywood's risk (McMahon), the external-internal power dynamics of the U.S. public debt (Hager), and General Electric's staying power and what can be learned from it for the study of capital accumulation (Cochrane). The speaker series is organized by the Forum on Capital as Power and sponsored by the York Department of Political Science and Graduate Program in SPT. LOCATION: Verney Room, 674 South Ross, Keele Campus (open to all, with refreshments) DATES: October 20, 27; November 3, 10, 17, 2015 TIME: 3:00-5:00 PM
