The liberals are looking for someone to blame for the current recession, and they are pointing their fingers at capitalism. However, magazine editor Steve Forbes and economics writer Elizabeth Ames do a good job of defending private enterprise with a new book called How Capitalism Will Save Us. They remind readers of the "explosion of prosperity" and innovation that were caused by President Ronald Reagan's pro-market reforms following what was called the stagflation of the Jimmy Carter regime in the 1970s. This book demonstrates how overregulation and high taxes have failed to produce prosperity every time they are tried.
The book is written as an informal conversation on hot-button topics currently debated in the press. Chapters are framed using a "rap" and "reality" format where each popular charge against capitalism is followed by an explanation of the "principles that show [reflect] how the economy really works." One "rap" is that the free market is brutal, with larger players crushing smaller competitors and companies unceremoniously dumping employees. The reality, say the authors, is that while free markets can be messy and unpredictable, this process is critical to economic health and ultimately creates more jobs than it destroys.
Another "rap" tries to make the case that government regulations are the best means to promote public safety and ethical business practices. Steve Forbes makes a persuasive case that overbearing state bureaucracies actually encourage corruption as people try to circumvent onerous and unfair rules. In highly regulated countries, the economy functions with the use of bribes. The book refutes many other false charges against capitalism, such as the notion that government intervention is the only way to make healthcare affordable for poor and middle-class Americans. The name of this useful book by Steve Forbes and Elizabeth Ames is How Capitalism Will Save Us.
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