Chapter 12 examines Hegel's characterization of human society as the "living good," which expresses his version of the analogy between societies and organisms. For him the analogy implies that societies both incorporate processes of life (in carrying out the activities necessary for material reproduction) and possess the same structure as biological life (that of a "self-positing" subject, which maintains itself by positing "contradictions" internal to itself and then negotiating them so as establish its own identity). Hegel also insists on the differences between life and social being: the presence in social life of self-consciousness and the capacity for freedom. Thus, societies are normatively and functionally constituted living beings that realize the good via specialized, coordinated functions, which, unlike the activities of organisms, are infused with ethical content deriving from their potential to be consciously self-determined. Analyzing Hegel's master–slave dialectic illustrates these ontological claims.

This book examines the concept of social pathology as it figures in the thought of Plato, Rousseau, Hegel, Comte, Marx, and Durkheim, demonstrating what it means to describe societies as "ill" and what the fact that we are so often drawn to conceiving of social problems as illnesses says about social ontology, or the kind of thing human society is. It explores the connections between social pathology and such phenomena as alienation, anomie, ideology, and social dysfunction and argues for the continuing relevance of the idea of "social sickness" for social critique. The aptness of the concept of social pathology in comprehending social ills points to important respects in which human societies are to be grasped as functionally-constituted, "living" beings and therefore as analogous to biological organisms, even if there are equally important respects in which the analogy does not hold, deriving primarily from the self-conscious and potentially free character of social activity. Human societies are understood as "spiritual" entities, the functions of which extend beyond material reproduction to include freedom, recognition, and self-transparency.

Chapter 3 examines some problems Marx takes to be inherent in capitalism that can be regarded as social pathologies, clarifying how dysfunction must be understood if his most sophisticated critiques are to be grasped. It focuses on forms of social pathology bound up with Marx's account of the formula for the circulation of capital, which distinguishes capital from mere money in terms of the function of each. Marx's biological language makes it plausible to interpret the dysfunctions of capitalism as pathologies: for example, its cancer-like growth that ignores the needs of producers. Yet these dysfunctions cannot be grasped without taking into account the spiritual aspects of human social being. Marx regards social life as spiritual – as informed by the aspiration to unite the ends of life with those of freedom in one's social activity – and capitalism's failure to allow for this unity as its principal defect.