What Went Wrong with Capitalism

4.1 4.1 out of 5 stars | 166 ratings

Price: 17.05

Last update: 11-30-2024


About this item

A century of expanding government has distorted financial markets, stoked massive inequality, and soaked America in debt.

Capitalism didn’t fail, it was ruined...

What went wrong with capitalism? Ruchir Sharma’s account is not like any you will have heard before. He says progressives are right, in part, when they mock modern capitalism as “socialism for the rich.” For a century, governments have expanded in just about every measurable dimension, from spending to regulation and the scale of financial rescues when the economy wobbles. The result is expensive state guarantees for everyone—bailouts for the rich, entitlements for the middle class, welfare for the poor.

Taking you back to the 19th century, Sharma shows how completely the reflexes of government have changed: from hands-off to hands-on, from doing too little to help anyone in hard times to today trying to prevent anyone suffering any economic pain, ever. Trading sins of omission and indifference for excesses of spending and meddling, governments from the United States to Europe and Japan have pumped so much money into their economies that financial markets can no longer invest all that capital efficiently.

Inadvertently, they have fueled the rise of monopolies, “zombie” firms, and billionaires. They have made capitalism less fair and less efficient, which is slowing economic growth and fueling popular anger. The first step to a cure is a correct diagnose of the problem. Capitalism has been badly distorted by constant government intervention and the relentless spread of a bailout culture. Building an even bigger state will only double down on what ruined capitalism in the first place.


Top reviews from the United States

DG
5.0 out of 5 stars Highly Recommended
Reviewed in the United States on July 1, 2024
A great book and highly recommended for anyone questioning the efficacy and durability of American capitalism. The author presents a well-reasoned progression of arguments and a clear explanation of how statism affects our present economy. His thesis that capitalism suffers under the weight of increasing regulation, easy money and debt frames his commentary on the social distress related to income inequality, tax policy, labor productivity, and ultimately the political support for capitalism itself. Briefly noting that correlation does not prove causation, the author’s argument is nevertheless based on correlation between diminishing returns from capitalism and economic trends over the epoch of his study (1970’s to 2023). Should you look to validate the author’s citations against economic databases, you may find reason to debate a few factors as well as ponder the omission of others. However, the thread of his argument is persuasive.

The author’s promotion of his admired democratic capitalistic states (Switzerland, Taiwan) could just as well describe the history of the US economy before the social commitment to bailouts, debt, and easy money. As someone whose working life spans the focus of the author’s analysis, I suggest that the impact of changing American culture is undervalued in the diagnoses, particularly with regard to the workplace.

In his closing the author notes that bailouts and easy money are populist mandates. Without being direct, the impression left is that nothing may change without a crisis, and unfortunately history supports this view. If your interest is insight, this is a great book. If you long for a magic cure, you may be disappointed.
C_Deworld
4.0 out of 5 stars The Cost of Living Beyond our Means
Reviewed in the United States on August 29, 2024
Mr. Sharma provides an eye-opening assessment of how easy money and big government have distorted the way our economy works and how it has exacerbated the divide between rich and poor. On the other hand, when he discusses the role of labor, he seems to have left out some important considerations. Labor is portrayed as a static factor in the economy across time. There is no discussion on the US economy’s changing labor needs as we have moved from a manufacturing to a service economy and whether the US labor force has kept pace, nor is there any discussion of how high labor costs in the US may have impacted productivity growth. We keep hearing about how some businesses are unable to find enough qualified workers. How might an excessive supply of unskilled or low skilled workers put downward pressure on some sector wages and increased income differences? Why have we failed to adequately train people to meet our labor needs? Otherwise, this is a highly informative explanation of how a well intentioned government can pave the way to economic collapse.
WJM Kennebunk,Me
5.0 out of 5 stars Excellent read
Reviewed in the United States on August 15, 2024
I am not an economist but I am concerned about our economy. This book brought to life the desperate need for smaller government. The need for better pay equity and the need to remove the addiction for business and citizens who rely on stimulus checks and cheap money to corporations in an effort for soft landings after a recession. If capitalism is to be saved we have to stop lending money to "zombie " companies just to keep them afloat .
Our current generation is starting to realize that capitalism is not working. Population is decreasing and with it productivity is on a downturn. These folks cannot afford a decent vehicle let alone a home. Their incentive to work hard and achieve is diminishing.
We need politicians who understand this and will work towards a smaller government and will work for us and not themselves before it is too late. And we as citizens need to be ready to tighten our belts.
This book brought all of this and more to light.
Michael R. Purcell
5.0 out of 5 stars Productivity is not the result of constant government meddling
Reviewed in the United States on July 28, 2024
This book explains why Capitalism is dying, dreaded and suffering. But our wise leaders tell us they have the answer: more meddling, which is not working, is anathema to a truly free market system and will drown us in more debt.
We already know that socialism, communism and fascism are failures, but like climate change, the masses only hear what they want to hear.
If we’re lucky our environment and our society will die together.
Fred W
5.0 out of 5 stars A must-read if you want insightful analysis. We’ll written.
Reviewed in the United States on August 6, 2024
Compares several countries and their economic systems, why they are successful and addresses the serious dangers of wild deficit spending. I recommend reading George Washington’s Farewell Address after reading this excellent book. We were warned by a brilliant man of today’s situation in 1796!
Hewbie
4.0 out of 5 stars Good overview of what's undermining our economic system.
Reviewed in the United States on July 12, 2024
See headline.
M. Karg
5.0 out of 5 stars Information for today and the next 40 years.
Reviewed in the United States on July 4, 2024
I highly recommend this book to every American young adult. It will help you to understand what is happening to you economically for the next 40 years, and maybe what you can help do about it. The book has strong undertones from Erich Fromm's 1941 masterpiece, "Escape From Freedom," available at most public and college libraries.
C. Krieps
5.0 out of 5 stars Great Insight of how to recover a bad situation
Reviewed in the United States on July 17, 2024
Easy to understand. Well backed up with facts and figures. Non biased politically which is extremely rare. Simple methods to counter. Not a formulaic solution but a clear mention of the alternatives.

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