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The Nature and Logic of Capitalism

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A wise and well thought-out booklet. Some readers may be put off by the level of abstraction, but how else can essential properties be discussed other than by abstraction from particular cases. Happily, the text proceeds without the obsessive concern with how things differ-- the hallmark of post-modernism, our intellectual fashion of the day. Nonetheless, the slim volume is not a primer and does make some demands of the reader.

In measured terms, Heilbroner characterizes capitalism as a concept and shows how its defining drive to appropriate profits shapes the entire society. There are a number of departures from Marxist social theory (e.g. the formative role of prestige-desire in the accumulation process), but the outline remains basically intact There are, of course, any number of practical upshots resulting from this point of view. One topical result (mine, not his) would be that instead of talking in neutral fashion about Western society or civilization in its current state, it would be more accurate to characterize each as `capitalist' or `bourgeois', since that class dominates the societal formation as a whole. Accordingly, the so-called `clash of civilizations' with the world of Islam, for example, would be better understood as a clash between Western capitalist civilization with whatever one makes of the Islamic side, a conceptual shift that puts a different cast on the nature of the conflict. Thus, instead of descibing the clash as between "freedom" and those "who hate freedom", as Bush invidiously puts it, the conflict would be framed in terms of profits expansion into a previously recalcitrant region of the world. (In that regard, consider L. Paul Bremer's diktats privatizing the Iraq economy, ones that any succeeding govrnment is legally bound to carry out. So much then for Iraqi self-determination!) All in all, this is not a mere quibble over words, but has far-reaching consequences.

Again, the obvious touchstone is Marx. And while the author follows the broad outline of Marxian social theory, he also wants to loosen up some of the more determinist elements. There is, for example, no mention of such common determinist staples as `dialectical necessity' or `historical inevitability. Heilbroner's is a much less certain world. In that sense, the book can be viewed as a broad reckoning of what remains relevant from Marx's classic social theory and what does not. Given the Bush administration's uncompromising revival of 19th century economics and imperial expansion, perhaps it's time to take an updated look at capital's foremost 19th-century critic.

Heilbroner in this book attempts to show what capitalism is, and he looks to a wide range of fields to find the answer. Drawing upon Freud, Smith, Marx and a number of well known economists, philosophers and scholars, he argues that Capitalism is not a state but rather a process, that developed by the inner need of man to dominate and gain power. He contrasts primitive and tributary systems that accumulated surplus for use values with capitalism which seeks surplus for the creation of more surplus; Marx's M-C-M'. The rest of the book builds upon this notion of capital's relentless search for profits.

Although you may not completely agree with Heilbroner's analysis of capital, it is important to look into the mirror he holds up to the system we are in. Heilbroner recognizes the defects of socialism and communism as alternatives to the capitalist system, but he also shows that capitalism as a system is built upon domination by the political system and then exploitation by capital of those who rely upon the system for their sustenance.

Although it is a relatively short book for the subject matter it covers, it is quite dense. Heilbroner's prose at times was too cryptic for me. I don't know whether he intentionally made the work more difficult than it need be to impress, but he would have succeeded more in his purpose to persuade if he was clearer in his exposition.

What was not satisfactorily answered for me is why the appropriation of surplus value by capital is wrong. Heilbroner argues that the return to capital is really a misnomer as it is the appropriation of surplus value created by labor. But surely the capitalist in order to have an incentive to allow the use of his capital and the risk he takes when he enters the market, is entitled to a share of the surplus value of labor.

Heilbroner's book is a necessary one for all those who live in a capitalist society. It questions the assumptions upon which our capitalist system is based. For those of you who are free-market fundamentalists, this book should be a sobering experience. I think everyone, of whatever political persuasion, should read this book. After all, if the free market is as good as you think it is, what harm is there in trying to see what some socialist says about it.

I won't add too much to what the other reviewers have already said. This is a good read, but it can be offputting because of the way the author writes (almost train-of-thought from a erudite speaker).

Stick with it though, as it becomes more comfortable a few chapters in (unfortunately, the book's only 7 chapters!). If anything, I think it's possible to skip the preface and first chapter, which I didn't find all that illuminating. He defines what "nature" (causes, reasonings) and "logic" (manifestations, rules, expressions of nature) are from an abstract point of view, but takes an entire chapter to say it.

Robert Heilbroner analyzes perfectly the mechanisms of the modern capitalist system: the driving need to extract wealth from the productive activities of society and use the surplus production to amass more wealth. It is an insatiable process of expansion and accumulation with profits as its life blood.
Those profits go to the owners of the means of production, the dominating class. But their domination hinges on an army of workers who are dependent for their livelihood on access to these means of production.
The owners have the power to direct and mobilize the activities of society, but in capitalist States there is a dichotomy between the capitalist class and the State. The latter continues to be the owner of the coercion force. However, the relation between business and the State is pragmatic. The power to tax makes the State a participant in the accumulation process. On the other hand, some public needs cannot be provided directly and fully by private initiatives (defence, justice, legal bases for property rights and market regulation, infrastructure, education).
A remarkable characteristic is the fact that political freedom has only appeared in capitalist States.

This book has nonetheless a few flaws.
The author underestimates the real nature of wealth and power. For him, `power is obscure in its psychic roots', and `has only minor evolutionary significance.' But, power and wealth are not less than a matter of life and death. Only one example: in Jack London's `The People of the Abyss' the average life of the wretched was only 29 years (in the beginning of the 20th century!).
He also saw in the future an increased power of the State. His long wave economic analysis seems to be truly disturbed by the Chinese and Indian economic revolutions.

This book is not to be missed by all those wanting to understand the world we live in.

This is a must read book if you want to know how to conduct your life in this system. It is excellent as well as thought provoking.
Do not miss this opportunity to think about a system that determines what happens to you in your life.

This book is a Marxian-influenced outline of the functioning of capitalism (a commodity-based system driven by the imperative to make accumulate capital), without getting caught up in the details of a theory of value. It deals with the essential drive to accumulate, the role of the state, the function of ideology, the course of development of capitalist society. It is very clear and well-written (as is to be expected of Heilbroner). It is succinct and somewhat prosaic.

Professor Heilbroner addresses not only Adam Smith and Karl Marx as one would expect, but Freud and philosophy as well. His conclusion could be paraphrased by substituting "capitalism" for "democracy" in Churchill's remark that democracy is the worst form of government except for all the others. He asks, without answering, "What is the future of capitalism?" But (writing in 1985!!) he said: "..the trend of capitalist society lies in the increased marshaling and deployment of the powers of the state, initially in support of the existing structure of accumulation..."

I truly enjoyed the Nature and Logic of Capitalism. When the book ran to concrete discussions in the first half of the book, it lacked.

However, in the later discussions, notably the larger abstract discussions on the ideological aspects of capitalism, the book shined. In its carefull exposition of the problems inherant in defining and understanding the heuristic concepts of capitalism and the larger issues of addressing these large abstract concepts, the book was sublime. I have gone back to the discussion several times to re-read it and develop concurrant thoughts. I would argue an attempt to find the book simply for the chapters on ideology and conceptualisation alone. One does not have to pick up the socialist implications and oreintation of this book to understand the value it possesses otherwise.

Overall, as a general exposition on the abstract notions of capitalism, this book does very well.

excellent for know much more, also about the ilogic or unlogic of the capitalism ... very good for the knowledge that need some presidents like Hugo Chavez, Evo Morales and european comunity Zapatero's boys.

I read many of Heilbroner's books and I've enjoyed most of them. Not this one. Usually his writing style was very approachable and he made economics interesting and relatable. Again, not this book. I was especially turned off by his overreaching use of words and it seems like the book is written by a much less brillant, Joseph Schumpeter. I have read Schumpeter's works and his style of fancy conversation is tiring also. In summary, Heilbroner expresses his reluctance in believing capitalism works and doesn't give a better solution. I feel his lack of convincing the reader that capitalism is the second best economic system literally made reading this book a waste of time. In summary, I would skip this book.