Capitalists in Spite of Themselves

Key themes

Intra-Elite Conflict

This is the central explanatory mechanism of the book. Lachmann argues that the struggles among different factions of the ruling class (monarchs, landed nobility, church hierarchy) over control of state resources, land, and labor were the primary drivers of institutional change. The outcomes of these conflicts, rather than class struggle between capitalists and workers, determined the conditions under which capitalism could or could not emerge.

State Formation and Fiscal Policy

Lachmann meticulously demonstrates how the evolving structure of the state and its fiscal policies were not merely reflections of economic changes but active shapers of them. The methods by which states raised revenue, granted privileges, and enforced laws were direct products of intra-elite struggles and, in turn, created the institutional environment for economic activity. Different state-building strategies led to different economic outcomes.

Unintended Consequences

A core tenet of Lachmann's argument is that capitalism emerged largely as an unintended consequence of elites pursuing their own short-term interests within the context of intra-elite conflict. Elites were not consciously building capitalism but were making strategic choices that, over time, inadvertently created the conditions for its rise, particularly in England where the outcomes of political struggles led to stronger property rights and market incentives.

Worth discussing

How does Lachmann's theory of intra-elite conflict challenge or complement traditional Marxist and Weberian explanations for the rise of capitalism?