23 Things They Don't Tell You About Capitalism

In Ha-Joon Chang's 23 Things They Don't Tell You About Capitalism, the "They" in the title are free-market ideologues, so this book could have been entitled "23 Things Free-Market Ideologues Don't Tell You about Capitalism." But, really, the book is organized as though the title is "23 Things Free-Market Ideologues Do Tell You about Their Particular Brand of Capitalism and Why Those 23 Things Are Wrong." I mention this just in case you were wondering how I lost my job drafting titles for books.In each chapter, Professor Chang provides first what a free-market ideologue would say in a very short snippet, followed by his more lengthy response replete with historical and contemporary examples. Having spoken to quite a few free-market ideologues in my time -- as a lawyer I move money from one place to another using guile, dirty tricks, and brute force so that the free-market ideologues for whom I work can count it before rolling around in it nude -- I can attest to the fact that free-market ideologues do, in fact, say almost all of the things that Professor Chang says they say, except they usually say them far more belligerently and not nearly as concisely.Now, I know that Professor Chang is a globetrotting economist who is also a professor at a cosmopolitan European university, so he probably knows many more free-market ideologues than I do and has probably heard at least some of them say all of these 23 Things. Nonetheless, I feel that I should mention that there are a few Things in Professor Chang's book that I have never heard any free-market ideologue say. For instance, I have never heard a free-market ideologue say, "A well educated workforce is absolutely necessary for economic development" (Thing 17). I have instead heard them say Things like, "People can educate themselves as much as they want as long as they don't do it with my money" and "You can get a Ph.D. in 'Making The Impossible Happen' and still be as dumb as a handful of nickels." I have also never heard a free-market ideologue say, as but one more example, we should strive for equality of opportunity rather than equality of outcomes (Thing 20). I have, instead, heard free-market ideologues say such things as, "People can have as much equality as they want as long as they don't do it with my money" and "Shut up."It's also worth noting that, though you might surmise it from Professor Chang's credentials even if I did not, this book is international in scope and some of its Things primarily address issues relevant only (at least at the time of this review) to countries other than the United States except insofar as foreign policy and aid are concerned. While this presented no problem for me, the only time I have heard free-market ideologues I know here in the United States discuss foreign matters, their universal arguments were limited to "Who Cares?" and "We should abolish all foreign aid except in the form of heavily outsourced invasions, preferably of oil-producing nations." So, again, at least here in the United States, there are Things in this book you may not hear a free-market ideologue say at all.American free-market ideologues do say, oh, probably eighteen or nineteen of the Things in this book. For each of these, Professor Chang provides a convincing, well-crafted, and concise response that, unfortunately, no free-market ideologue will ever read, which is why I think Professor Chang felt comfortable referring to them as "They" in his title.As I note above, each of these chapters provides a thorough but brief initiation to its topics followed by a well-illustrated argument in which possible objections are handily addressed. If you are like me and this is one of the first books you have ever read devoted entirely to economics that was not in graphic form and concerned only with a little rich boy who owned a robot maid, this will be your first introduction to some of these topics. While that is fine, I caution you to dig a little deeper before you let tangential issues in the book sway your personal financial decision-making. As one example, Professor Chang discusses microfinance in Thing 15 and correctly states that microfinance and microcredit have never been demonstrated to lift their beneficiaries out of poverty. Professor Chang further points out in a section hyperbolically entitled "The Grand Illusion" that unsubsidized microcredit can involve interest rates of forty or fifty percent (and much more in some countries). Finally, Professor Chang notes that microfinance is often not used to fuel entrepreneurship, but is instead used to finance consumption. All of that is true. As Professor Chang mentions, "the problems [of microfinance] are too numerous to list here." So, apparently, were the benefits. Plenty of evidence demonstrates that microfinance aids the economic stability of its beneficiaries. Beneficiaries can save in times of abundance and borrow in times of hardship. And, if you have ever, as I have, gotten a cash advance on your 28.9% credit card, paying ATM fees and a cash advance surcharge of two to five percent knowing full well that you would not be able to repay that debt until you graduated from law school, you know that forty to fifty percent interest is not so bad when it's all that stands between you and pizza, beer, condoms, and lottery tickets. None of these points have anything to do with Professor Chang's thesis, which is that microfinance may, in fact, fail at its stated objectives: to lift people out of poverty and to instigate entrepreneurial successes in third-world countries. But don't judge microfinance based solely on the brief treatment in Professor Chang's book. He points out that stability and security -- usually provided by a viable safety net -- are crucial to worker flexibility, mobility, and risk-taking (Thing 21). For some in the third world, microfinance is their only threadbare safety net. Professor Chang does not pretend that this is an exhaustive treatise on tangential topics like microfinance. So, whether you are thinking about getting involved in microfinance (Thing 15), building a supersonic transatlantic jet (Thing 12), or starting a factory in Burundi that produces nothing but bright ideas (Thing 9), don't let this book discourage you. Do some additional research and live your dream.While this book is largely complete, I do believe that Professor Chang would have done well to address a few other Things that free-market ideologues say, since they probably say some Things far more often than any of these 23 Things. Things such as, "If it weren't for me, you would still be living in a homeless shelter and panhandling on the streets, son," or "Let's step out on the terrace, have a couple of cigars, and talk business, Mr. Vice President," or "You're fired." Perhaps these points needn't be addressed directly, since Professor Chang provides a cogent conclusion to his book entitled "How to rebuild the world economy." There he writes that he won't "spell out all the detailed proposals required for the reconstruction of the world economy," but will instead focus on eight principles. The eight principles are thoughtful and rational, and all eight will make for fine, civil debate the next time I have a free-market economist over for a dinner party. But I am still left with lingering questions. When free-market ideology is so pervasive that anyone suggesting the slightest tweak is labeled a socialist, and when free-market ideologues control virtually all the wealth and power in much of the developed world (and certainly in all of the United States), what are the chances that thoughtfulness and rationality will prevail? How do you convince someone that rational (or even irrational) self-interest and the accumulation of wealth are not the only motivational forces underlying human enterprise (Thing 5) when, in their wildest imaginings, they cannot conceive of any other inspiration?That is, perhaps, a topic for a different book. This is an excellent book that does what it sets out to do -- patiently refute 23 guiding principles of the most prevalent form of runaway capitalism -- in a mindful yet entertaining way. I highly recommend it, in particular for readers like myself who know just how much they don't know.

The author of this book, a professor of economics at Cambridge, is decidedly pro-capitalism. He just sees some of the inefficiencies and problems with the orthodox economics that bills itself as neoclassical and enjoys much prestige in the academy and in the halls of government.Ha-Joon Chang is a Capitalist, but he wants capitalism with a human face. In each of these 23 separate "Things," he challenges economic orthodoxy. He sets it up with the common knowledge at the beginning with a section of "What they tell you" and then spends time refuting the common knowledge with a "What they don't tell you" section.Each of the Things is targeted and precise. He knows what he is writing about and he writes it well. You don't even need to read the book chronologically - he even sets up ways to read the book according to your own line of inquiry.If you are familiar with heterodox economics, many of the issues raised will be familiar. In fact, the will be familiar to both Austrian and Marxian critics - they're similar in source but your own heterodoxy seems to stem from the conclusions you draw from the deficiencies in the standard model. Mr. Ha-Joon Chang finds the middle way, and that is admirable but in a way acting as an apologist; there are problems, but we only need tweaks on the edges.I find myself on the edge in evaluating this book. For me, it is a fantastic repository of information that could serve as a quality reference. However, I feel that several of the "Things" could be expanded to further their argument. A couple of them called out for books of their own. I still don't know if that is good or bad.

Just as the title says, the author goes over 23 common myths and sacred truths held by capitalists. Aside for the introduction and conclusion, the book is divided into 23 chapters. These are:1. There is no such thing as free market.2. Companies should not be run in the interest of their owners.3. Most people in rich countries are paid more than they should be.4. The washing machine has changed the world more than the internet has.5. Assume the worst about people and you get the worst.6. Greater macroeconomic stability has not made the world economy more stable.7. Free market policies rarely make poor countries rich.8. Capital has a nationality.9. We do not live in a post industrial age.10. The US does not have the highest living standard in the world.11. Africa is not destined for underdevelopment.12. Government can pick winners.13. Making rich people richer doesn’t make the rest of us richer.14. US managers are overpriced.15. People in poor countries are more entrepreneurial than people in rich countries.16. We are not smart enough to leave things to the market.17. More education in itself is not going to make a country richer.18. What is good for General Motors is not necessarily good for the United States.19. Despite the fall of communism, we are still living in planned economies.20. Equality of opportunity may not be fair.21. Big government makes people more open to change.22. Financial markets need to become less, not more efficient.23. Good economic policy does not require good economists.It would take too long for me to go over each of these chapters. In any case, the titles are self-explanatory. I will instead try to look at the common thread uniting them. And the common thread is that the author does not oppose capitalism per se. In fact, he likes it. He is not some left wing neo-Marxist who opposes accumulation of wealth and wants to abolish private property. What he does oppose, however, is the neoliberal brand of capitalism. For those who don’t know, neoliberalism was (and still is) the dominant economic ideology for the past thirty years. Neoliberalism, to simplify, advocates as little government involvement in the economy as possible and taxing the rich as little as possible. There are two reasons for that. The first one, the neoliberalists claim, is that markets are the most efficient when left to their own devices. The second one is that rich people are, supposedly, the main creators of wealth and it is their private spending and business activities that drive the economy.The author takes a good, hard look at these claims and one by one demolishes them. He argues that neoliberalism is inefficient at best, and destructive at worst. If you do not believe him, just look at what happened in 2008. The 2008 economic crisis was the worst one since the 1929 Great Depression. The recovery has been so slow that in many ways you could say that the crisis is still ongoing.For thirty years the world has been adopting neoliberal policies. Some places adopted them more than others, but overall the world economy had shifted considerably towards what neoliberalists wanted. The markets have been steadily deregulated and the rich got richer (whereas the poor stayed more or less as poor as they were). And where is this great prosperity that they said we will be getting? All I see is the rich getting richer and everyone else suffering.In conclusion, this is a very good book about a very important subject. It is not a book for economists (although they should read it too), but for laymen. It avoids using complicated economic terms and explains everything in very plain, simple language. I say that the book is about a very important subject because even if you are not interested in economics, you are affected by it. We all live, function and work in a society that is to large extent affected and shaped by economic forces. These economic forces have been, in turn, affected and shaped in the past thirty years by neoliberalism—an ideology that obviously is not working. I give this book five stars.

It was an amazing book. And gave good insights into the many problems of free market capitalism. And gave great suggestions at the end. Highly recommended.

Especially strong on Asia/developing markets.

Il libro descrive sotto una luce davvero insolita molti dei concetti di economia che solitamente ci vengono presentati solo guardandoli da una certa direzione. Lo considero interessantissimo e tra l'altro utilizza un linguaggio semplice, accessibile a tutti. A mio parere è assolutamente da non perdere. Cinque stelle e lode!

This is an excellent book arguing against neo-liberal economics imposed upon developing nations. It is very easy to read and presents great arguments. Only thing, Bad Samaritans and 23 Things They Don't Tell You About Capitalism are very similar, down to the case studies. They are just written with different techniques. Reading one of them would be enough. I personally prefer 23 Things. If you are really into the subject, you can read both. I read both and it was worth my time.

Chang demystifies lots of market fundamentalists tenets, which downplay the role of societal institutions and government in economic development.Markets are surely the engine of growth and prosperity but they need society and government, and society working through the government to raise educational levels, combat illiteracy, provide a safety net for the weak and protect private property and human rights.South Korea is nothing but a miracle. With the strong and friendly hand of the United States, as well of their own government, the country abandoned rock-bottom misery and entered the wealthiest nations club.Today South Korea displays high technology manufacturing and industry and also has become a more open country, both in terms of economic and civil freedoms.

Almost everything. All the most important contradictions about free market capitalism and ways we could be doing things much better. We don't have to change things a whole lot and we don't need to go without in order for everyone on earth to be that much better off.An accessible, easily understandable read by a guy who really knows what he's talking about. Recommend it for everyone.Thankyou Mr. Chang for spelling it out for us so clearly.