It is the community. Around the world, there is widespread economic anxiety, domestic political tension, strife between countries, and now talk of a cold war reemerging between the United States and China. Why?
I argue that every time there’s a big technological revolution, it upsets the balance in society between three pillars: the political structure—that is, government or the state; the economic structure—that is, markets and firms; and the sociological, human structure—that is, communities.
When that balance is upset, we see anxiety and conflict, a signal that we’re striving for a new balance.
To really understand capitalism’s success, one has to understand the important role of the community. As it voices its concerns through democracy, the community is critical to maintaining the balance between the state and markets. When the community is appropriately motivated and engaged, it enables liberal market societies to flourish.
Recently, some communities have been weakened significantly while others have sped ahead. Technological change is creating a new meritocracy, but one that is turning out to be largely hereditary, denying opportunities to many. The many, in economically disadvantaged and thus socially dysfunctional communities, could turn their backs on markets. The consequent imbalances could undermine liberal democratic society. more>
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