Capital Evolution, the New American Economy - Book Review
American capitalism is at a crossroads. Economic anxiety, political polarisation and the thinning of the middle class have made this unavoidable. Capital Evolution addresses this moment directly. Seth Levine and Elizabeth MacBride ask what form of capitalism can still offer a fair chance to most people, and what kind of economic model the United States is now drifting toward.
The authors begin with the lived reality behind the debate: rising costs, fragile families, people shifting from job to job without building assets, and communities that never fully recovered from de-industrialisation. These examples are not used as anecdotes but as signs of a deeper structural shift. The economic model that shaped the late twentieth century no longer reflects the experience of many Americans.
This is part of the backdrop to the political turbulence of recent years, including the return of Donald Trump and a renewed argument about the purpose of markets.
The end of the old economic story
Levine and MacBride argue that the neoliberal period, shaped by the influence of Milton Friedman, has reached its limits. Shareholder primacy, deregulation and faith in markets once promised efficiency and growth. Over time, these ideas widened inequality, weakened mobility and left many workers exposed to risk.
The authors do not call for abandoning capitalism. Instead, they ask what form of capitalism can replace a model that no longer sustains the broad middle class it once relied upon.
Policy Instability and Economic Uncertainty
One of the strongest parts of the book examines the instability created by unpredictable policy. The authors describe how shifts in tariffs, trade rules and regulatory signals have increased uncertainty for businesses of all sizes. Several interviewees note how difficult long-term planning has become when rules can change quickly.
This is not a debate about ideology but about reliability. Markets need steady ground beneath them. When policy becomes erratic, investment weakens and risk-taking declines.
A System Moving Toward Industrial Strategy
The authors place this in a wider context: the United States is experimenting with a more assertive industrial posture, particularly in strategic sectors. They describe the expansion of trade barriers and the emergence of a modern industrial policy, without judging it as good or bad. The question they raise is whether these changes are building a more productive system or simply adding volatility.
What Dynamic Capitalism means
The centre of the book is the idea of Dynamic Capitalism, it is not a blueprint but a direction. The authors argue that capitalism evolves, and that the next stage must focus on
widening access to ownership,
rebuilding economic mobility,
reinforcing the rule of law
and restoring trust in reliable information.
Their emphasis on information is particularly strong. The epilogue argues that capitalism cannot function without truth.
Reliable information underpins markets, contracts and risk-taking. If access to trustworthy information narrows, power concentrates and innovation suffers.
As they write,
"Capitalism cannot function without truth,"
and,
"If these foundations erode at a national level, the viability of the American free market system itself could be at risk."
Real-World Voices: What Entrepreneurs Say
A number of founder and leader interviews illustrate this point. Dan Schulman of PayPal describes how redesigning pay structures and improving transparency changed internal culture.
"Employee engagement skyrocketed," he told the authors, and he dismissed the old dichotomy outright: "This whole idea that profit and purpose are at odds with each other is ridiculous."
These examples support the authors' argument that values, incentives and clear information matter inside real businesses.
Other perspectives
Viewed from outside the United States, many of the pressures described in Capital Evolution resonate ...