Can we save capitalism from itself?

Thoughts from reading
The Trouble With Markets: Saving Capitalism from Itself, Second Edition
by  Roger Bootle


This book has three sections and the Economist author goes on to say how we have ended up here in the first three chapters.  

Section 1: The great implosion:
The 1930s had seen the Great Depression and the 1970s the Great Inflation. The 1990s had seen the Great Moderation. This was the Great Implosion.
The next 4 chapters he deals with the trouble with the markets.
 

Section 2: The trouble with the Markets
As Robert Heilbroner put it: “The profit motive, we are constantly being told, is as old as man himself. But it is not. The profit motive as we know it is only as old as modern man.”
OK, The next section of three chapters
 

Section 3: From implosion to Recovery
Keynes was right in three major respects:

  • Economic activity is permeated by fundamental uncertainty.
  • As a result, many of the major factors that affect the economy are psychological and depend critically on the state of confidence, which is not readily analyzable or predictable.
  • Consequently, the modern economy is inherently unstable and fragile

Conclusion:
Conclusion starts with this quote –
All happy families are alike; each unhappy family is unhappy in its own way.
–Leo Tolstoy, 1873


 
Overall this book is a good read, but I am still unsure of one thing:
So, Is it really possible to save capitalism from itself?
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: