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virendrasinghshekhawat13's review against another edition
4.0
The book starts with a brief introduction on what capitalism stands for & how it is practiced in general economies. The authors provide a detailed example of how capitalism came into play. Book is divided into 4 major parts
1. The benefits of free financial markets
This part deals with how capitalism came into play. How the poor are denied access to finance by the capitalists & how options like collateral & connections fail to aid the poor & ultimately benefit the rich. It also details the tactics like diversification of risk, information about the borrower can help in enhancing the access to finance to poor. This part also deals with how the institutionalisation of stock ownership, shifted the concentration of management from stakeholders to shareholders. Increase in competition forces the firms to outsource their unproductive works, which leads to more employment and access to finance. Improvement in technology and worker mobility are also major reasons which lead to financial revolution. It also talks about the dark side of finance & what leads to financial bubble & how to overcome it. Towards the end of this part, the authors detail the ways to strengthen the financial system to ensure access to finance to the needy.
2. When do financial market emerge
This part deals with Why do some countries have a flourishing financial market and others not ? It details how the government plays an important role in ensuring that property rights are protected. How to prevent excessive power of government over its citizens. It logically explains how sometimes, the government favour some classes (Capitalist) over the other (general public). Also, it provides details on how sometimes the government is unable to help incumbent/capitalist because of external competition. It also details the ways to break the collusion of the government & capitalist.
3. The great reversal
This part provides examples from the history of various countries about how the world war affected the economies around the world, how the finance functions have developed through those phases. It provides details on how during these economic downturns, governments intervene by suppressing competition and making common cause with the firm's owner. How the governments continued the active and passive policies that sought to repress domestic financial market. It provides details on how the governments also control the credit flow by the nationalisation of banks, often the finance flow from these bank to either government or incumbent. It details how the market-driven system & Relationship Capitalism system differ, & pros & cons of both.
4. How can markets be made more viable, politically
This part deals with future challenges of capitalism & also provide the detail solution to the problems mentioned in the previous parts of the book.
All in all, the book is a powerful defence of the free market system. It radically changes our understanding of the capitalist system. It is also a strong advocate for the role of financial markets in the growth of an economy. This is a great book to be read by people who are interested in capitalism & how that ails the economies around the world, and solutions to erode it.
1. The benefits of free financial markets
This part deals with how capitalism came into play. How the poor are denied access to finance by the capitalists & how options like collateral & connections fail to aid the poor & ultimately benefit the rich. It also details the tactics like diversification of risk, information about the borrower can help in enhancing the access to finance to poor. This part also deals with how the institutionalisation of stock ownership, shifted the concentration of management from stakeholders to shareholders. Increase in competition forces the firms to outsource their unproductive works, which leads to more employment and access to finance. Improvement in technology and worker mobility are also major reasons which lead to financial revolution. It also talks about the dark side of finance & what leads to financial bubble & how to overcome it. Towards the end of this part, the authors detail the ways to strengthen the financial system to ensure access to finance to the needy.
2. When do financial market emerge
This part deals with Why do some countries have a flourishing financial market and others not ? It details how the government plays an important role in ensuring that property rights are protected. How to prevent excessive power of government over its citizens. It logically explains how sometimes, the government favour some classes (Capitalist) over the other (general public). Also, it provides details on how sometimes the government is unable to help incumbent/capitalist because of external competition. It also details the ways to break the collusion of the government & capitalist.
3. The great reversal
This part provides examples from the history of various countries about how the world war affected the economies around the world, how the finance functions have developed through those phases. It provides details on how during these economic downturns, governments intervene by suppressing competition and making common cause with the firm's owner. How the governments continued the active and passive policies that sought to repress domestic financial market. It provides details on how the governments also control the credit flow by the nationalisation of banks, often the finance flow from these bank to either government or incumbent. It details how the market-driven system & Relationship Capitalism system differ, & pros & cons of both.
4. How can markets be made more viable, politically
This part deals with future challenges of capitalism & also provide the detail solution to the problems mentioned in the previous parts of the book.
All in all, the book is a powerful defence of the free market system. It radically changes our understanding of the capitalist system. It is also a strong advocate for the role of financial markets in the growth of an economy. This is a great book to be read by people who are interested in capitalism & how that ails the economies around the world, and solutions to erode it.
srinoelreads's review against another edition
5.0
Very insightful critique from one of the best profs at University of Chicago's Booth School of Business.
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