Capitalism and Democracy is a short book and, as Tomas Spragens admits, it does not contain “a great deal of cutting-edge scholarship” (page vii). Nonetheless, it deserves to be widely read.

It comprises an explanation and analysis of “the sharp disagreement encountered these days between advocates of laissez-faire and champions of a more expansive welfare state” (page 10). Spragens suggests that, properly analysed, this debate involves disagreements in relation to three different issues: whether markets maximise prosperity; the moral defensibility of the distributions of resources produced by the capitalist marketplace; and whether the kind of society that free markets and minimal government produces would be a good place in which to live. Spragens analyses each of these issues in turn before attempting to draw some conclusions reflecting his own opinions.

Spragens states that his “general conviction is that reliance upon robust free markets as the principal mechanism for the allocation of a society’s economic efforts and resources is wise and proper” but goes on to say “I also believe … that governments need to regulate and supplement the distributive consequences of markets in a number of significant ways” (page 191). This view is apparent throughout the book and some readers will wish to challenge it whilst others will inevitably feel that their particular views or arguments are not accurately reflected. Nonetheless, Spragens has made a great effort fairly to present the opposing arguments in relation to each issue. He expressly disclaims having definitive answers to the issues at hand and, before expressing his own conclusions, explains why “those conclusions – and any of yours as well – have to be acknowledged as vulnerable to reasonable disagreement” (page 164). He is thus not trying to argue a specific case but rather “to narrow the geography of debate to a place where reasonable people may differ” (page 10).

In an age of political polarisation, this approach is refreshing, as is Spragens’ blunt reminder that “We cannot have it all” (page 185). However, it only takes the discussion so far. In the modern western world, the key issue is not whether there should be regulation, distribution and intervention by governments but how much regulation, distribution and intervention is necessary or desirable and Spragens has little to say about this. This points to what the book is and what it is not: it is intended to provide a framework for thinking rather than an analysis of contemporary problems and their potential solutions.

Spragens helpfully discusses what may be considered to be appropriate functions of government and suggests that “Our democratic debates … need to center on what the improvement and perfection of the mixed economy look like in concrete terms” (page 229) but he does not advance these debates (and, in the context of what he has said earlier in the book, his use of the term “perfection” may seem surprising!). Indeed, one is left with the uneasy feeling that he is broadly justifying the current balance between the laissez-faire and interventionist approaches that exists within the United States, subject to a few tweaks here and there. Essentially, his position appears to be similar to that adopted by Michael Greatz and Ian Shapiro in The Wolf at the Door (reviewed on our website) without the commendably specific proposals contained in their work.

The book is US-centric, but this is an issue to be borne in mind rather than a fundamental defect. Spragens is writing to a US audience and the arguments that he outlines and the things that he assumes reflect this. In relation to economic matters, the centre of gravity of US political debates is to the right of that in Europe. Hence, Spragens asserts that “few would challenge” the assumption that “enhancing wealth production is a good thing to seek” (page 69) whereas a European author might feel a need to defend such a proposition. Conversely, Spragens finds it necessary to explain some versions of laissez-fair philosophies that will seem extreme to European audiences. However, whilst this may result in those from Europe feeling that the book does not deal with some things that they would like to deal with, and deals with some things that they don’t consider to be relevant, it does not prevent the vast bulk of what is said being relevant to them.

Of course, it is possible to find fault with a number of things that Spragens says or does not say. Most of the issues in this respect are relatively minor but a few are more significant. For example, the book fails to analyse the distinction between society and the state and, more seriously, its discussion of the concept of “justice” lacks the precision of other parts of the book and is unsatisfactory. Spragens recognises the slipperiness of the concept and the problems in using it within the context of the laissez-faire versus intervention debate. He also draws attention to the serious problems in John Rawls’ much discussed concept of justice. However, he fails to identify clearly the major competing concepts of justice and thus to draw attention to one of the reasons that those discussing “economic justice” or “social justice” often talk past one another. From a UK Christian perspective, this is a pity because, in the UK, the concept of “social justice” is much talked about at the moment and many Christians discuss it as if their understanding of it incontrovertibly emerges from the Bible (particularly the Old Testament) without reflecting on their assumptions that underly that understanding.

Spragens seems to have sensed that there is something not entirely satisfactory about his treatment of these concepts because he returns to the subject in a four page postscript tagged on to his final chapter, which defends his “reticence to invoke social justice as an independent major basis” for the judgments and recommendations he has offered (page 230). He argues that it is “Impossible for anyone to claim convincingly that some specific distribution of resources would be entirely fair and just” having regard to the differences in people’s abilities, characters, upbringing and circumstances (page 230). He recognises that this might be seen as a counsel of despair or reflective of a lack of concern about unfairness but suggests that, in practice, for other reasons, much can be done and, indeed, is done to mitigate inequalities both at the level of government intervention and at a personal and community level.

Spragens says that he has two principal target audiences: the educated public who would like to improve their understanding of the proper role of the capitalist market place within a democratic society and college level students seeking an overview of issues that they will likely confront in economics, political science, moral philosophy and public policy courses. He may, however, have understated the range of people who will find the book of interest. At the very least, theology students should be added to the list of those who should read it and many others, who have previously thought about the issues, will benefit from a succinct overview of them.

“Capitalism and Democracy: Prosperity, Justice, and the Good Society” by Thomas A. Spragens, Jr was published in 2021 by Notre Dame Press (ISBN 978-0-268-20014-5). 234pp.

Richard Godden is a Lawyer and has been a Partner with Linklaters for over 25 years during which time he has advised on a wide range of transactions and issues in various parts of the world. 

Richard’s experience includes his time as Secretary at the UK Takeover Panel and a secondment to Linklaters’ Hong Kong office. He also served as Global Head of Client Sectors, responsible for Linklaters’ industry sector groups, and was a member of the Global Executive Committee.