An economist’s plan to salvage liberal democracy

Daron Acemoglu and James Robinson argue that the success or failure of nations is determined by their political and economic institutions. They present a comprehensive theory based on 15 years of research, using historical examples from the Roman Empire, the Mayan city-states, the Soviet Union, and various other regions to demonstrate how inclusive institutions foster economic growth and prosperity, while extractive institutions lead to poverty and stagnation. The authors discuss critical questions such as China's economic growth, the future of the United States, and the most effective ways to help countries move from poverty to prosperity.

In 'Ill Fares the Land', Tony Judt addresses the societal and economic confusion following the 2008 financial crisis. He critiques the nihilistic individualism of conservatives and the failures of liberals to defend effective government. Judt argues for a return to social democracy, emphasizing the role of the state in ensuring fairness, security, and stability. The book challenges readers to rethink their political and social values and to consider alternative governance models that prioritize collective benefit over mere efficiency.

Nobel laureate Daron Acemoglu examines how liberal democracy flourished through shared prosperity, democratic governance, and free pursuit of knowledge, but faltered amid economic disruptions, digital technologies, and postindustrial inequality. He documents liberalism's successes and crises over the last four decades, critiquing its failure to adapt, and proposes a renewed working-class liberalism that prioritizes community, shared prosperity, and diverse values.

Published in 1776, 'The Wealth of Nations' is Adam Smith's magnum opus that laid the groundwork for modern economics. The book critiques mercantilist economic theories and introduces the concept of the 'invisible hand,' which describes how individual self-interest leads to societal benefit. It emphasizes the division of labor, the accumulation of capital, and the importance of free markets. Smith argues that a nation's wealth is not measured by its gold and silver reserves but by the stream of goods and services it produces. The book also outlines the core functions of government, such as maintaining defense, enforcing civil law, and promoting education, while advocating for limited government intervention in market activities.

Daron Acemoglu and Simon Johnson argue that technological progress is not automatically shared by everyone and that the benefits of innovation depend on who controls it. Drawing on history from the medieval era to artificial intelligence, the book shows how power shapes technological choices and why societies must steer innovation toward broader prosperity.