by Sage Pearce-Higgins Sun Jan 27, 2019 12:42 pm
Take care to note that the idiom in its simplest form is X is to Y what W is to Z. You're right that we're going to find nouns here, as we need nouns to be the subject of the verbs 'is', plus there's a kind of parallel / comparison structure going on.
However, this case is complicated the fact that it's in a modifier. The author could have written 'Adam's Smith's books are to democratic capitalism what Marx’s Das Kapital is to socialism'. I'm sure you'd agree that we have four nouns here. However, instead we have a noun modifier introduced with 'that'. Since its a noun modifier, it's giving information about 'books', not the whole clause.
Think how this works in a simpler construction. If I write: 'I have a dog that is bigger than your dog' I'm clearly comparing the two dogs, not the clause with a dog.