The Culture of the New Capitalism (Hardcover)

by Prof. Richard Sennett (Editor) "We best begin by giving some substance to the contrast between new and old, and at the very outset we are caught up short..." (more)
Key Phrases: United States, New Labour, Protestant Ethic (more...)

Editorial Reviews

Review
"packed with thought... profound and challenging... Sennett is here opening up a fascinating debate about how modern institutions, with their constant restructurings and delayerings, are generating ever-sharper inequality." Madeleine Bunting, New Statesman "Sennett has been observing for some years how modern work patterns make self-respect ever harder to achieve. Now, he has brilliantly pushed his thinking to a remorseless conclusion... a triumph" Will Hutton, The Observer "Hardly any social thinkers have given serious thought to the drastic changes in corporate culture wrought by downsizing, 're-orging', and outsourcing. Fortunately, the exception - Richard Sennett - is also one of the most insightful public intellectuals we have. In The Culture of New Capitalism Sennett addresses the new corporate culture with his usual vast erudition, endlessly supple intellect, and firm moral outlook. The result is brilliant, disturbing, and absolutely necessary reading." Barbara Ehrenreich, author of Bait and Switch: The (Futile) Pursuit of the American Dream "Reflective, studded with sharp insights, moving with grace between big ideas and specific cases. This is vintage Sennett." Douglas W. Rae, author of City: Urbanism and Its End" --This text refers to the Paperback edition.

Review
"Reflective, studded with sharp insights, moving with grace between big ideas and specific cases. This is vintage Sennett."-Douglas W. Rae, author of City:Urbanism and Its End (Douglas W. Rae )

"A fairly successful economy does not produce much in the way of contentment. Are there seismic rumbles that might cause cracks on the surface? Richard Sennett thinks so. Read on."-Robert M. Solow, Institute Professor Emeritus, M.I.T. (Robert M. Solow )

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Product Details

• Hardcover: 224 pages
• Publisher: Yale University Press (January 1, 2006)
• Language: English
• ISBN-10: 030010782X
• ISBN-13: 978-0300107821
• Product Dimensions: 8.2 x 5.8 x 0.9 inches
• Shipping Weight: 12.6 ounces (View shipping rates and policies)
• Average Customer Review: 4.0 out of 5 stars See all reviews (4 customer reviews)
• Amazon.com Sales Rank: #701,309 in Books (See Bestsellers in Books)

Customer Reviews

Most Helpful Customer Reviews

47 of 48 people found the following review helpful:

4.0 out of 5 stars Working in the New Economy, May 8, 2006

By	Izaak VanGaalen (San Francisco, CA USA) - See all my reviews (TOP 500 REVIEWER)    (REAL NAME)

As a member of the New Left in the 1960's, Richard Sennett was a young radical railing against big corporations and big government. He was also critical of state socialism for being just another bureaucratic system holding the individual in its suffocating grip. That was then, now the bureaucracies have been delayered and flattened out. It's management by email.

As the old saw goes: Be careful what you ask for. In "The Culture of New Capitalism," Sennett seems somewhat nostalgic for the security and rewarding work that bureaucracies once provided. The dismantling of large-scale institutions did not result in the communities of trust and solidarity for which the radicals had hoped. Instead, they left modern day workers in very fragmented and ambiguous working conditions.

According to Sennett, these conditions came about in the 1970's and have accelerated since. After the breakdown of the Bretton Woods agreement, capital markets became globalized. Corporate managers became more concerned about increasing short term value - higher share price - and less concerned about the long-term welfare of their employees. Over the years wages have stagnated and benefits have been reduced. In short, "the new capitalism" or "new economy" of which he speaks has been reconfigured to give an increasing amount of wealth to shareholders rather than employees.

What effect this has had on the workplace is the focus of this study. The target industries of this study were high technology, finance, and media, but what has taken place there foreshadows what is happening in other industries and also the public sector.

First, Sennett finds that employees must learn how to manage short-term relationships; corporations no longer provide a long-term framework. Second, the modern workplace values a meritocracy of potential abilities rather than craftsmanship developed over a long period of time. And finally, one must learn how to let go of the past and accept the fact that one's place in the corporation is no longer guaranteed. To sum up, the ideal worker in the new economy is someone who must think in the short term, constantly develop their potential and not look over their shoulder.

That's great if you are young, unattached, wealthy, and well educated. However, if you are middle-class, middle-aged, and have multiple responsiblities, it's a cruel world.

For nearly a generation, globalization has brought downward pressure on unskilled wages, but now - thanks to technological innovations - it is bringing downward pressure on skilled wages as well. Never before has capitalism had unlimited access to labor. There has been a race to the bottom in search of lower wages.

Americans seem to have resigned themselves to the vicissitudes of the global labor markets; the Europeans and the Japanese have been less sanguine, or a least more protective of their lifestyles. It may be that Americans believe free markets are an intrinsic good. I believe that at some point there will be a backlash against outsourcing and offshoring, and that this book may be prescient. As Sennett rightly notes, free markets do not necessarily translate into more freedom for individuals.

32 of 33 people found the following review helpful:

5.0 out of 5 stars Mysteries of Corporate Mayhem Revealed!, November 26, 2006

By	Panopticonman "panopticonman" (Brooklyn, NY USA) - See all my reviews

Richard Sennett in THE CULTURE OF THE NEW CAPITALISM reflects upon the reactionary extirpation over the past three decades of the Western social capitalist state. Starting with a discussion of Bismarckian social capitalism which was founded on the model of the Prussian Army's highly successful bureaucracy and which provided structure and discipline to cultural relations, Sennett ends with a bleak meditation on the values encoded in the New Economy versus the Old. These include the elevation of process over craftsmanship, of "flexibility" over stability, of superficial over deep knowledge, and of centralized power over mediated authority. Along the way, Sennett shares pithy insights into the nature of this revolutionary shift and the cultural and economic dislocations it has caused.

Sennett states that three new pages were turned in the late twentieth century workplace. "First has been the shift from managerial to shareholder power in large companies." (pg. 37) This shift in power, according to Sennett turned a second new page: "The empowered investors wanted short-term rather than long-term results." The third new page representing a challenge to the past "lay in the development of new technologies of communication and manufacturing." He notes that "one consequence of the information revolution has...been to replace modulation and interpretation of commands by a new kind of centralization." (pg. 43) At the same time, automation, growing out of technological innovation "...has affected the [social capitalist] bureaucratic pyramid in one profound way: the base of the pyramid no longer needs to be big." (pg. 43). Circuits replace people.

According to Sennett, the old model, built on the pyramid model with a mass of workers at the bottom responding to a chain of command situated at the top is on the way out. In contrast, the new model he likens to an MP3 player: "The MP3 machine can be programmed to play only a few bands from its repertoire; similarly, the flexible organization can select and perform only a few of its many possible functions at any given time. In the old-style corporation, by contrast, production occurs via a fixed set of acts; the links in the chain are set. Again in an MP3 player, what you hear can be programmed in any sequence. In a flexible organization, the sequence of production can be varied at will." (pgs.47-48). (Notably, and perhaps inevitably, the new model got its start in the cutting edge businesses of finance, technology, pharma and media and their support industries: marketing research, advertising, and business consulting).

In a remarkable section on the shift in how employees are assessed - based on achievement in the old structure and "potential" in the new -- he shows how SAT testing supports the new regime. Sennett notes that "in the search to consummate the project of finding a [Jeffersonian] natural aristocracy, the mental life of human beings has assumed a surface and narrowed form. Social reference, sensate reasoning, and emotional understanding have been excluded from that search, just as have belief and truth. ...These [flexible] institutions ... privilege the kind of mental life embodied by consultants, moving from scene to scene, problem to problem, team to team. He says that "...this talent search cuts reference to experience and the chains of circumstance, eschews sensate impressions, divides analyzing from believing, ignores the glue of emotional attachment, penalizes digging deep--the state of living in pure process which the philosopher Zygmunt Bauman calls 'liquid modernity.'" (pgs. 120-122)

He notes that while citizen-workers might have been trapped in Max Weber's "iron cage" under the old system, nevertheless the structure gave its denizens a sense of meaning and was roughly consonant with general social values. In essence, Sennett says: "Time lay at the center of this military, social capitalism: long-term and incremental and above all predictable time." (pg. 23).

This new architecture, crafted by the business consultant class to whom agency is given by the new corporation, enables the exercise of enormous centralized power through new communications technology, and at the same time evades the responsibility of its recommendations, as do those who hire them. Bloodless terms like "flexible" workplaces," "off-shoring" and "right-shoring," "downsizing" and "right-sizing" are, for instance, deployed to mystify mass firings and those responsible for them.

The ideal worker in this paradigm is conceived to be flexible, cooperative, efficient and not get too involved in the nuts and bolts when doing problem-solving. Want ads looking for "entrepreneurs," and "self-starters" are emblematic of this shift. The ideal worker is most of all attuned to short-term shareholder values, values which insist on change. Whether the change is good or bad is almost irrelevant: change is in and of itself a signal to investors of impending short-term gains.

Sennett offers "five ways in which the consumer-spectator-citizen is turned away from progressive politics," each element of which arises from the culture of the new capitalism. He says that the consumer-spectator-citizen is "(1) offered political platforms which resemble product platforms and (2) gold-plated difference; (3) asked to discount 'the twisted timber of humanity (as Immanuel Kant called us), and (4) credit more user-friendly politics; (5) accept continually new political products on offer."(pg. 163). Summarizing these points, he says: "The culture of the new capitalism is attuned to singular events, one-off transactions, interventions; to progress, a polity needs to draw on sustained relationships and accumulate experience. In short, the unprogressive drift of the new culture lies in its shaping of time." (pg. 178).

In his last paragraph, Sennett attempts to end on a hopeful note: "What I have sought to explore in these pages is thus a paradox: a new order of power gained through and ever more superficial culture. Since people can anchor themselves in life only by trying to do something well for its own sake, the triumph of superficiality at work, in schools, and in politics seems to me fragile. Perhaps indeed, revolt against this enfeebled culture will constitute our next fresh page."

I don't know about you, but I'm not holding my breath.

5.0 out of 5 stars The Latest Logic of Capital: New Alienations, June 8, 2009

By	Juan del Valle "JDV" (USA) - See all my reviews

This review is from: The Culture of the New Capitalism (Paperback)

Sennett presents a passionate analysis of the latest developments of our working conditions and how these affect our feelings of inadequacy and frustration as workers/employees, etc. Contextualized in a diachronic explanation of the business practices, his essays are mainly centered around the bureaucratic (dis)function of corporations and on the way workers and employees react to the latest logic of capital, which is presented as a moving target of uncertain consequences. Although his reflection is at times too quick--to the point of falling into some stylistic mishaps--the reader has a better understanding regarding the whys and hows of the frenzied realities associated with consumption and desire. Sennett does a great job of integrating into his interpretation different philosophical and theoretical approaches, using good analogies and concise language. However, as I was reading his intelligent dissection of the "the specter of uselessness," particularly in relation to the lack of recognition for a "job well done", I was surprised that the author did not make a connection with the traditional Marxist concept of alienation. Similarly, I would have liked to see Lacan's ideas of desire when Sennett elaborated on consumption.

I recommend this book to anyone interested in having a clearer image of the dynamic nature of late capitalism and its impact on the quality of our lives.