A quote from my current reading on the nature of capitalism which I found particularly inspiring. Hodgson argues that many thinkers have neglected the institutional diversity of capitalism in their push to promote ‘pure’ versions of either market individualism or socialism:
“As long as we are trapped in the Tweedledum-and-Tweedledee debate between planning and markets, we shall be unable to appreciate the intermediating networks and institutions that have played a vital role in the development of modern capitalism. Experience reveals the limitations of both wholesale socialism and atomized individualism. Along with individual property rights, all successful capitalisms have embraced corporate organization and other intermediate layers of organized power as well as varying measures of state intervention. These are important for both its emergence and its vitality.
But while intermediate organization is necessary, it is not sufficient. It guarantees neither dynamism, democracy, nor legality. The experience of fascism in the twentieth century shows that big business can connive with autocracy against democracy and liberty. As US President Franklin D. Roosevelt argued: “The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself.” Excessive corporate or military power can also undermine or constrain democracy. Countervailing power has to balance rather than overwhelm other legitimate authority. The maintenance of politicoeconomic systems with their counterbalanced powers requires constant vigilance.”
Geoffrey M. Hodgson (2015), Conceptualizing Capitalism