According to traditional accounts, the history of tragedy is itself tragic: following a miraculous birth in fifth-century Athens and a brilliant resurgence in the early modern period, tragic drama then falls into a marked decline. While disputing the notion that tragedy has died, this wide-ranging study argues that it faces an unprecedented challenge in modern times from an unexpected quarter: political economy.

Since Aristotle, tragedy has been seen as uniquely exhibiting the importance of action for human happiness. Beginning with Adam Smith, however, political economy has claimed that...