Wednesday, February 26, 2014

Capitalism - Back to the Future?

I just finished reading 23 Things They Don't Tell You About Capitalism by Ha-Joon Chang, an economist at Cambridge University.  Looking back at what economic principles have been successful over the past century or so and how the more recent rampant "free-market capitalism" has so clearly NOT worked, culminating in the financial meltdown of 2008, Chang presents 23 economic statements and then proceeds to show why the accepted "wisdom" surrounding them aren't giving us the results claimed.  

Among the list are the following:


  1. There is no such thing as a free market.
  2. Companies should NOT be run in the interest of their owners
  3. Most people in rich countries are paid more than they should be
  4. The washing machine has changed the world more than the internet has.
  5. Greater macroeconomic stability has NOT made the world economy more stable
  6. Free-market policies rarely make poor countries rich
  7. We do not live in a post-industrial age
  8. The US does not have the highest living standard in the world
  9. Governments can pick winners
  10. Making rich people richer doesn't make the rest of us richer
  11. US Managers are over-priced
  12. People in poor countries are more entrepreneurial than people in rich countries
  13. We are not smart enough to leave things to the market
  14. What is good for General Motors is not necessarily good for the United States
  15. Despite the fall of communism, we are still living in planned economies
  16. Big government makes people more open to change
  17. Financial markets need to become less, not more, efficient
  18. Good economic policy does not require good economists

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