Author: Peter Drucker
Published in 1939, this was Drucker’s first major work.
It is not a management book — it is political economy and social philosophy.
The core argument:
Fascism arose because liberal capitalism failed to provide social meaning and security after World War I.
The “economic man” — the Enlightenment idea that humans are primarily rational, self-interested economic actors — collapsed under mass unemployment, inflation, and social humiliation.
When economic systems fail to deliver dignity, people seek belonging in authoritarian movements.
Central Thesis
1️⃣ Liberal Capitalism Assumed Stability
19th-century thought assumed:
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Free markets
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Individual rationality
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Limited government
But this system depended on social cohesion and economic progress.
2️⃣ The Great Depression Broke the System
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Mass unemployment
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Middle-class collapse
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Political paralysis
Economic insecurity became existential insecurity.
3️⃣ Totalitarian Movements Filled the Vacuum
In Germany and Italy:
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Fascism offered identity
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Collective purpose
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Emotional belonging
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Authority and certainty
Drucker argued this was not just political extremism — it was a structural response to social disintegration.
Why the Title Matters
“The End of Economic Man” means:
You cannot build society solely on economic rationality.
Humans require:
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Community
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Moral structure
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Institutional legitimacy
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Participation
Markets alone are insufficient.
Intellectual Influences
The book engages implicitly with:
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Karl Marx
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John Maynard Keynes
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Max Weber
Drucker was diagnosing the failure of classical liberal political economy before WWII fully unfolded.
Why It Still Matters (Modern Relevance)
The themes resonate today:
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Rising inequality
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Populism
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Distrust in institutions
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Cultural polarization
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Technological disruption
The argument parallels later works like:
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Slouching Towards Utopia
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The Road to Serfdom
The common thread:
Economic instability can destabilize political order.
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