23 Things They Don’t Tell You About Capitalism
Debunking common capitalist myths with insightful economic analysis.
Summary of 7 Key Points
Key Points
- The ‘Free Market’ is an illusion
- Companies should not be run in the interest of their owners
- Most people in rich countries are paid more than they should be
- The US does not have the highest living standard
- Africa is not destined for underdevelopment
- Governments can pick winners
- Making rich people richer doesn’t make the rest of us richer
key point 1 of 7
The ‘Free Market’ is an illusion
The perspective on ‘free market’ being an illusion presented in the content implies that while the free market is often touted as the epitome of economic freedom and efficiency, it’s actually a heavily regulated system. ‘Free Market’ is a term often used to describe an economic system where the prices for goods and services are determined by open-market and consumers, in which the laws and forces of supply and demand are free from any intervention by a government, price-setting monopoly, or other authority. But in reality, it is an amalgamation of rules and regulations that is often overlooked or ignored…Read&Listen More
key point 2 of 7
Companies should not be run in the interest of their owners
Companies are often perceived as property of the shareholders, run in their best interest. This concept assumes that shareholders are the most invested party and hence, should have the highest control. However, this view disregards the various other stakeholders who are equally, if not more, invested in the company. Employees, for instance, invest their time, skills, and often, a significant part of their lives to the company. Their contribution and stake is immense and often overlooked in favor of shareholders’ interests…Read&Listen More
key point 3 of 7
Most people in rich countries are paid more than they should be
In many affluent nations, there’s a widespread belief that people are compensated fairly for their labor. This is based on the conventional wisdom that the market determines wages in a perfectly efficient manner. However, this is largely a myth. Many workers in these nations receive salaries that are disproportionately high, relative to their actual productivity or the global standards of pay for similar work…Read&Listen More
key point 4 of 7
The US does not have the highest living standard
While it’s common to believe that the US enjoys the highest standard of living globally, this is not necessarily the case. Although the United States has the largest GDP, it is important to understand that this does not translate to individual wealth or quality of life. In terms of GDP per capita, numerous smaller nations actually outperform the United States. Countries like Luxembourg, Singapore, and Qatar, to name a few, have higher GDP per capita. ..Read&Listen More
key point 5 of 7
Africa is not destined for underdevelopment
The notion that Africa is destined for underdevelopment is a flawed one. It is a perspective often formed through the lens of biased historical narratives and economic theories that don’t fully recognize the potential of the continent. Africa, with its rich resources and young population, has all the prerequisites necessary for economic growth and development. Its seeming underdevelopment is not a matter of destiny, but rather, a result of various factors such as unfair trade practices, external interference, and poor governance…Read&Listen More
key point 6 of 7
Governments can pick winners
The book posits that governments have a more significant role in the economy than is often acknowledged. This includes the capability to pick winners or foster successful industries. This perspective challenges the mainstream economic thought that markets should be left to their own devices – the ‘invisible hand’ theory proposed by Adam Smith. The author argues that this laissez-faire approach can often lead to market failures…Read&Listen More
key point 7 of 7
Making rich people richer doesn’t make the rest of us richer
The notion that making the rich richer will inevitably benefit the rest of us is a widespread belief. However, this perspective is often challenged. The belief is built on the theory of ‘trickle-down’ economics, which posits that as the wealthy accumulate more wealth, their increased spending and investments will eventually lead to economic benefits for everyone else…Read&Listen More