The progress of markets erodes traditional relations of social solidarity that are essential for the stability and performance of societies. As markets advance, pressures build on the state to replace informal social obligations with formal ones. Regulation may fail, however, which tends to give...

Flexible markets require flexible societies; humans, however, need a stable social order. According to received wisdom, when capitalist development razes traditional social structures, society fights back, and welfare state policies organize new stability to replace the old. More market produces...