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Product details

File Size: 810 KB

Print Length: 392 pages

Page Numbers Source ISBN: 0609610708

Publisher: Crown Business; 1st edition (February 18, 2003)

Publication Date: February 18, 2003

Sold by: Random House LLC

Language: English

ASIN: B000FBFMX4

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Amazon Best Sellers Rank:

#72,964 Paid in Kindle Store (See Top 100 Paid in Kindle Store)

In the Wealth of Nations, Adam Smith defended the new world order of market competition, but warned that businessmen did not like competition and will try to undermine it at every turn. They will do this by collusion, acquiring competitors, and asking the government to give them a monopoly position (rent-seeking). The authors relentlessly repeat Smith's theme and bring it up to date. The most important thing they do in this book is explain what a healthy financial system does for the economy (mainly keeping the cost of financing innovation and competition low), and explaining why so many countries have severely underdeveloped financial systems (the capitalist powers that be and their government cronies don't want competition, so they hate modern financial institutions).The authors are accused by many reviewers of begin laissez-faire right-wing ideologues, but it is the reviewers who cannot get beyond left versus right. I recommend this book highly.

Offers useful review of the importance of financial markets for economic development together with illustrations; also provides sound overview of potential threats to financial markets from rent-seeking interests both in government and among private actors.

"Saving Capitalism" is a book with a simple and even intuitive thesis -- that capitalists don't like competition. Since competition is the heart of capitalism, then capitalists don't really like true capitalism. Though simple, it is innovative because no one thinks of capitalisms biggest enemies as the capitalists themselves.The book goes to great lenghts to demonstrate the truth in this thesis, drawing examples from different countries and showing what rational behavior by capitalists leads to such a negative situation. The thesis is well defended and makes a reader -- especially an economist as myself -- question the very foundations of economics.However, the authors also expose the reasons why capitalism has survived, especially in the West, despite such threats. It leads to the conclusion that one must fight for freedom in a wide sense, including economic freedom, meaning well oiled financial markets, open trade barriers, and low regulation to increase competition in as many markets as possible. Competition, whatever the source -- for capital, for labor, for markets, for foreign exchange --, is the heart of capitalism and should be defended by all.

This book was published a couple of years before the current credit crunch really began to make itself felt; I read this book a few months ago with a rather strange sense that the authors had warned about how fragile global capitalism can be and how easy it is for politicians to resort to bludgeon of Big Government to deal with crises. The authors show, for example, how financial markets can be captured by the dominant players in the field, who then use a crisis - often aided by governments - to carve out certain privileges for themselves. We are seeing that in the demands for strict regulation of certain institutions and the outlawing of tax havens, for example. The book is certainly not a starry-eyed defence of laissez faire; the authors believe markets require rules to ensure that the system works for the benefit of the majority rather than for a narrow elite, for example.I have a few disagreements with the authors - they do not sufficiently address whether the existence of state central banks and fiat money may cause credit bubbles and crashes, for example. But generally speaking, this is a fine defence of the free market and an expose of the special pleading that often lies behind demands for greater state regulation. At a time when such demands are getting very noisy, this book pays a lot of study.

One of the best reads out there. Makes a lot of financial issues affecting countries clearer.

An extensive reading that brings satisfaction when one reaches the conclusion, which well synthesizes the ideas presented.The historical and well-founded account of the constitution and consequences of the financial system helps the reader better understand the healthy limits for the capitalist to live more responsibly with capitalism.

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