Graduation Year


Date of Submission


Document Type

Open Access Senior Thesis

Degree Name

Bachelor of Arts


Philosophy and Public Affairs

Reader 1

Paul Hurley

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2022 Alejandro Villegas


This paper explores the reasons that Hegel and Smith were optimistic about the promise of capitalism. I identify the virtues and characteristics that capitalism would provide in theory which focused on the potential benefits it would have for average person. I then examine capitalism in practice and identify the ways that Hegel and Smith were wrong. I use Henry Hansmann model of the firm and his account of cost, which fits well with the problems I hope to address. With the help of Henry Hansmann’s account of ownership and cost, I offer potential methods to address the failures of the free market. These methods can be separated into two categories: changes in corporate structure or practices and changes in governing institutions or legislation. I primarily use the examples of Amazon and truck drivers to consider how market failures in both industries could be resolved, which hopefully can provide guidance for reforming other parts of our capitalism.