Fleshing out the invisible hand

For Profit By William Magnuson; Basic Books; 368 pages; US$32 and £25

THERE is no mention of Elon Musk in William Magnuson’s magnificent history of corporations, which stretches from the societas publicanorum of ancient Rome, through Renaissance Florence, the Age of Discovery and the might of American industrial capitalism to Silicon Valley. Yet reading it makes clear why the pioneer of electric cars, private rockets – and now, via Twitter, controller of part of the public sphere – commands attention. For more than 2,000 years, corporations such as his have produced some of humankind’s greatest achievements. But usually the most dazzling overstep the mark, leaving a trail of debris and distrust behind them.

The contention of the book is that private enterprises often have public interest in mind. They are, as Magnuson sees it, orchestrators of the invisible hand of Adam Smith’s The Wealth of Nations. Selfish individuals, looking out solely for themselves, co-operate with each other to the benefit of society as a whole.