Gretchen Morgenson is the New York Times business columnist who won a Pulitzer Prize in 2002 for her coverage of Wall Street. The subtile of The Capitalist Bible is “The Essential Guide to Free Markets and Why They Matter to You.” With the meltdown of the economy and the lingering bitterness of the recession, many people are questioning capitalism (as Michael Moore’s new movie will) and the need for free markets. The Capitalist Bible provides an eloquent defense not only of capitalism, but the need to keep markets free from excessive regulation and meddling (well-intentioned or otherwise) by Government. Capitalism and free markets are not panaceas but useful tools to improve economic well-being and our own individual life-styles. Despite their flaws, no other system yet invented comes close to the immensity of their wealth-creating powers. The articles assembled in this book provide plenty to think about. GRADE: B+
You test my ability to say anything intelligent when you review such books. So I won’t say anything other than I’m listening.
Since I teach this stuff, I like to share new books on business and the economy that can be grasped by non-specialists, Patti. Because we all have to cope with the ramifications of the economy, it helps to understand what the hell is going on. The Capitalist Bible explains a lot.
It’s not free markets that bother me so much, it’s the “screw everyone and everything except the bottom line” that gets me. For instance, now that it looks like there is some chance of a national health care plan (public option or no) many big companies are already cutting out employee and retiree medical coverage completely. I don’t mean just making lower contributions, or forcing a cheapest HMO choice, I mean they pay nothing, and that’s pure profit.
You may say I’m not talking about free markets, but rather about capitalism, but the two are so entwined there’s no separating them, really. Or so it seems to me. The markets can be and do whatever, but with widespread implementation of the philosophy that employees are nothing more than disposable resources, to be used and thrown away without a thought, the bean counters may wind up choking on the beans. I hope they do.
Here, when fires sweep through neighborhoods, people who have lost their homes say “the house and contents was just stuff. It’s the people that count, and we’re all safe.” CFO’s of the big companies would safe the stuff and toss the people into the flames. A curse on them all.
Greed is going to be part of any system, Rick. So is corruption. Humans have flaws and they tend to come out in the worst possible times like crises. A system like capitalism, with the right controls and regulations, has proven to provide growth that communism and socialism and any other kind of -ism seem incapable of matching. Of course, on a planet with limited resources, growth is going to be a problem soon. Despite their flaws, capitalism and free markets are the best economic system we have.
Oh and congratulations on receiving the One Lovely Blog Award. Good for you!
As a fellow ONE LOVELY BLOG AWARD winner, many thanks Rick!
How about one international universal health care system that is the same in Kenya, Haiti and here? Why should your place of birth influence your quality of life so much? Okay so socialism has always attracted me.
You need to read The Road to Serfdom by Friedrich von Hayek (recipient of the Nobel Memorial Prize in Economic Sciences in 1974), Patti. It’s the best critique of socialism I know of. And, it’s written for a general audience. The ideals of socialism are attractive, but the system breaks down in implementation and paying for the services.
With Patti here, that makes three of us!
You need to read The Road to Serfdom, too, Rick.
George, maybe you can help me understand something.
I read Forbes magazine, and in most issues Steven Forbes advocates for the USA having a strong currency, and says that our present weak dollar policy is an impediment to economic growth.
He claims a stronger currency will solve many of our problems. Is that true? If the weak dollar is so bad, why do we keep it?
Well, Drongo, the main effect of a weak dollar is that it makes our exports cheaper. It also has the effect of making imports from countries with strong currencies more expensive (so consumers will buy cheaper priced domestic goods rather than more expensive foreign goods). And, since oil is priced in U.S. dollars, it affects oil prices. In the long run, Forbes is right about a strong currency supporting a strong economy. But desperate times require currency manipulation. Hope that explanation helps.
I know your right, George. Sorry for the rant. It’s just that my wife’s company chopped medical benefits and I was angry about it. We’ll get it worked out. I apologize for making your blog a forum for my frustrations.
You can vent anytime you want, Rick. Too many organizations are chopping medical benefits. That’s why health care reform needs to happen SOON!
Yes George, it does help. Thank you.
You’re welcome, Drongo. I don’t know everything about business and economics, but I know a lot. Always happy to share the knowledge.
Yeah, that lack of regulations sure worked out well for us.
An economy without regulation is like a street basketball game without a ref, Bob. Soon or later, the whole thing breaks down.