Capitalism is a system of financing new ideas and technologies. Thriving on constant disruption, it expands in search of cheaper labor, and it discovers new technologies that radically change the nature of work. From the first stock markets to modern cryptocurrencies, capitalism has also created its own institutions. The resulting upheavals are not always welcomed by political forces, established businesses, or society more broadly, but controlling capitalism has always proved to be a challenge.

In this timely book, Vlad Tarko explores the meaning of capitalism, its origins, the varieties of capitalism, and its expansion to a global system. He discusses both the idealized institutions under which capitalism works best, and the reasons why capitalism often thrives even under highly imperfect institutions. Last but not least, he discusses why, despite generating unprecedented growth, capitalism suffers periodic crises of legitimacy related to inequality and uncertainty.

Understanding Capitalism is the go-to text for students of politics, philosophy, and economics, as well as a handy reference for scholars working across these fields.

Vlad Tarko is Associate Professor and Head of the Department of Political Economy and Moral Science at the University of Arizona.