Thing 1: There is no such thing as free market. Thing 4: The washing machine has changed the world more than the Internet. Thing 5: Assume the worst about people, and you get the worst. Thing 13: Making rich people richer doesn't make the rest of us richer. If you've wondered how we did not see the economic collapse coming, Ha-Joon Chang knows the answer: We didn't ask what they didn't tell us about capitalism. This is a lighthearted book with a serious purpose: to question the assumptions behind the dogma and sheer hype that the dominant school of neoliberal economists-the apostles of the freemarket-have spun since the Age of Reagan. Chang, the author of the international bestseller Bad Samaritans, is one of the world's most respected economists, a voice of sanity-and wit-in the tradition of John Kenneth Galbraith and Joseph Stiglitz. 23 Things They Don't Tell You About Capitalism equips readers with an understanding of how global capitalism works-and doesn't. In his final chapter, "How to Rebuild the World," Chang offers a vision of how we can shape capitalism to humane ends, instead of becoming slaves of the market.
Chang (Bad Samaritans) takes on the "free-market ideologues," the stentorian voices in economic thought and, in his analysis, the engineers of the recent financial catastrophe. Free market orthodoxy has inserted its tenterhooks into almost every economy in the world over the past three decades, most countries have privatized state-owned industrial and financial firms, deregulated finance and industry, liberalized international trade and investments, and reduced income taxes and welfare payments. But these policies have unleashed bubbles and ever increasing income disparity. How can we dig ourselves out? By examining the many myths in the narrative of free-market liberalism, crucially that the name is itself a misnomer: there is nothing "free" about a market where wages are largely politically determined; that greater macroeconomic stability has not made the world economy more stable; and a more educated population itself won't make a country richer. An advocate of big, active government and capitalism as distinct from a free market, Chang presents an enlightening pr cis of modern economic thought and all the places it's gone wrong, urging us to act in order to completely rebuild the world economy: "This will some readers uncomfortable... it is time to get uncomfortable."
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"The smartest guys in the room" have insisted for several decades now that the simplest understanding of the profit motive was the goose that would lay increasingly valuable and complex golden eggs if we just gave them the keys to the economic and financial machinery. To a huge extent we did hand over those keys and they brought us to the brink of ruin.
Amazingly, they clamour to be handed the keys again based on the same old assumptions, clearly having understood nothing. The insistent, friendly, plain speaking voice of Ha-Joon Chang methodically debunks their claim to understand how economies work and lays a road map to a better, smarter, more prosperous, more stable and more equitable world for us all.
This is essential reading not only for those in the drivers seats of the world economy but for all of us passengers as well.