The Law of Capitalism and How to Transform It

A fascinating study of the legal underpinnings of capitalism, reasons why the system must be transformed, and actions we can take

Even though capitalism has been conventionally described as an economic system, it is actually a deeply entrenched legal regime. Law provides the material for coding simple objects, promises, and ideas as capital assets. It also provides the means for avoiding the legal constraints that societies have frequently imposed on capitalism. Often lauded for creating levels of wealth unprecedented in human history, capitalism is also largely responsible for the two greatest problems now confronting humanity: the erosion of social and political cohesion, which undermines democratic self-governance, and the threats that emanate from climate change.

By exploring the ways that Western legal systems empower individuals to advance their interests against society, Katharina Pistor reveals how capitalism is an unsustainable system designed to foster inequity. She offers ideas for rethinking how the transformation of the law and the economy can help us create a more just system--before it is too late.

Katharina Pistor is the Edwin B. Parker Professor of Comparative Law at Columbia Law School. She is the author of The Code of Capital: How the Law Creates Wealth and Inequality. She lives in New York.